Tokushu Tokai Paper Co., Ltd. (3708) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nippon Kodoshi Corp.

Tomoegawa Corp.

Chuetsu Pulp & Paper Co., Ltd.

Rengo Co., Ltd.

Daio Paper Corp.

Tokushu Tokai Paper Co., Ltd.

Nippon Filcon Co., Ltd.

Nichiban Co., Ltd.

Mitsubishi Paper Mills Ltd.

Hokuetsu Corp.

Nippon Paper Industries Co., Ltd.

Why is Tokushu Tokai Paper Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.46%

The company has been able to generate a Return on Capital Employed (avg) of 3.46% signifying low profitability per unit of total capital (equity and debt)

Weak Long Term Fundamental Strength with a 7.82% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Capital Employed (avg) of 3.46% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 4.39% and Operating profit at 7.82% over the last 5 years

With a fall in Net Sales of -2%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 5 consecutive quarters
NET PROFIT(Q) At JPY 346.64 MM has Fallen at -61.27%
INTEREST COVERAGE RATIO(Q) Lowest at 3,056.98
CASH AND EQV(HY) Lowest at JPY 18,285 MM

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Tokushu Tokai Paper Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tokushu Tokai Paper Co., Ltd.

-49.13%

-0.60

72.80%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.39%

EBIT Growth (5y)

7.82%

EBIT to Interest (avg)

18.34

Debt to EBITDA (avg)

1.58

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.86

Tax Ratio

26.94%

Dividend Payout Ratio

42.93%

Pledged Shares

Institutional Holding

ROCE (avg)

3.54%

ROE (avg)

7.61%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.85

EV to EBIT

19.96

EV to EBITDA

7.95

EV to Capital Employed

0.88

EV to Sales

0.96

PEG Ratio

Dividend Yield

ROCE (Latest)

4.42%

ROE (Latest)

4.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.84% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 21.89 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.57 times

NET SALES(Q)

Highest at JPY 25,225 MM

OPERATING PROFIT(Q)

Highest at JPY 3,273 MM

OPERATING PROFIT MARGIN(Q)

Highest at 12.98 %

PRE-TAX PROFIT(Q)

Highest at JPY 2,100 MM

NET PROFIT(Q)

Highest at JPY 1,477.47 MM

-10What is not working for the Company

INTEREST(HY)

At JPY 166 MM has Grown at 27.69%

CASH AND EQV(HY)

Lowest at JPY 15,334 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.21 times

Here's what is working for Tokushu Tokai Paper Co., Ltd.

Net Sales

Highest at JPY 25,225 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 3,273 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 12.98 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 2,100 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,477.47 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at 21.89 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.57 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -4.84% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Tokushu Tokai Paper Co., Ltd.

Interest

At JPY 166 MM has Grown at 27.69%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 15,334 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 5.21 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio