Tokyo Kaikan Co., Ltd. (9701) 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

Kushikatsu Tanaka Holdings Co.

Hurxley Corp.

Tokyo Kaikan Co., Ltd.

Towa Food Service Co., Ltd.

Kourakuen Holdings Corp.

Satoh & Co., Ltd.

Balnibarbi Co., Ltd.

WDI Corp.

ANRAKUTEI Co., Ltd.

Hiramatsu, Inc.

Yakiniku Sakai Holdings, Inc.

Why is Tokyo Kaikan Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.23%

The company has been able to generate a Return on Capital Employed (avg) of 3.23% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 3.23% signifying low profitability per unit of total capital (equity and debt)

With a growth in Net Profit of 25.9%, the company declared Very Positive results in Dec 25

DEBT-EQUITY RATIO (HY) Lowest at 29.31 %
INTEREST COVERAGE RATIO(Q) Highest at 4,498.37
RAW MATERIAL COST(Y) Fallen by -8.01% (YoY)

With ROCE of 7.94%, it has a expensive valuation with a 1.16 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 18.91%, its profits have fallen by -45.8%

Underperformed the market in the last 1 year

The stock has generated a return of 18.91% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tokyo Kaikan Co., Ltd. should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Tokyo Kaikan Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tokyo Kaikan Co., Ltd.

18.91%

1.52

15.00%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.83%

EBIT Growth (5y)

53.72%

EBIT to Interest (avg)

-0.31

Debt to EBITDA (avg)

4.45

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

0.68

Tax Ratio

28.62%

Dividend Payout Ratio

11.18%

Pledged Shares

Institutional Holding

ROCE (avg)

3.23%

ROE (avg)

8.04%

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

1.23

EV to EBIT

14.55

EV to EBITDA

8.76

EV to Capital Employed

1.16

EV to Sales

1.21

PEG Ratio

Dividend Yield

ROCE (Latest)

7.94%

ROE (Latest)

8.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

No Trend

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

12What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 29.31 %

INTEREST COVERAGE RATIO(Q)

Highest at 4,498.37

RAW MATERIAL COST(Y)

Fallen by -8.01% (YoY

CASH AND EQV(HY)

Highest at JPY 14,874.96 MM

NET SALES(Q)

Highest at JPY 4,727.34 MM

OPERATING PROFIT(Q)

Highest at JPY 930.08 MM

OPERATING PROFIT MARGIN(Q)

Highest at 19.67 %

PRE-TAX PROFIT(Q)

Highest at JPY 764.86 MM

NET PROFIT(Q)

Highest at JPY 520.62 MM

EPS(Q)

Highest at JPY 157.81

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Tokyo Kaikan Co., Ltd.

Interest Coverage Ratio

Highest at 4,498.37

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 29.31 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Net Sales

Highest at JPY 4,727.34 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 930.08 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 19.67 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 764.86 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 520.62 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 157.81

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 14,874.96 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -8.01% (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