Tokyo Printing Ink Manufacturing Co., Ltd. (4635) 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

Natoco Co., Ltd.

Japan Pure Chemical Co., Ltd.

Tokyo Printing Ink Manufacturing Co., Ltd.

Niitaka Co., Ltd.

Fujikura Kasei Co., Ltd.

Japan Insulation Co., Ltd.

Taisei Lamick Co., Ltd.

Asahipen Corp.

Nippon Felt Co., Ltd.

Kimoto Co., Ltd.

Teraoka Seisakusho Co., Ltd.

Why is Tokyo Printing Ink Manufacturing Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.87%

The company has been able to generate a Return on Capital Employed (avg) of 1.87% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.59 times

Poor long term growth as Net Sales has grown by an annual rate of 5.36% and Operating profit at 72.89% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.59 times
The company has been able to generate a Return on Capital Employed (avg) of 1.87% 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 5.36% and Operating profit at 72.89% over the last 5 years

Positive results in Jun 26

NET PROFIT(HY) At JPY 1,441.61 MM has Grown at 103.55%
ROCE(HY) Highest at 7.95%
RAW MATERIAL COST(Y) Fallen by -5.16% (YoY)

With ROCE of 6.82%, it has a very attractive valuation with a 0.60 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 -65.46%, its profits have risen by 107.7%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tokyo Printing Ink Manufacturing Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

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

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

Is Tokyo Printing Ink Manufacturing Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tokyo Printing Ink Manufacturing Co., Ltd.

-64.63%

-0.40

96.27%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.36%

EBIT Growth (5y)

72.89%

EBIT to Interest (avg)

23.74

Debt to EBITDA (avg)

1.73

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

1.26

Tax Ratio

27.10%

Dividend Payout Ratio

42.74%

Pledged Shares

Institutional Holding

ROCE (avg)

3.01%

ROE (avg)

5.09%

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

0.57

EV to EBIT

8.75

EV to EBITDA

5.13

EV to Capital Employed

0.60

EV to Sales

0.40

PEG Ratio

Dividend Yield

ROCE (Latest)

6.82%

ROE (Latest)

6.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bearish

Bullish

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly 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

NET PROFIT(HY)

At JPY 1,441.61 MM has Grown at 103.55%

ROCE(HY)

Highest at 7.95%

RAW MATERIAL COST(Y)

Fallen by -5.16% (YoY

CASH AND EQV(HY)

Highest at JPY 8,586 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.14 times

NET SALES(Q)

Highest at JPY 13,347 MM

-9What is not working for the Company

INTEREST(Q)

Highest at JPY 18 MM

Here's what is working for Tokyo Printing Ink Manufacturing Co., Ltd.

Net Profit

At JPY 1,441.61 MM has Grown at 103.55%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 13,347 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 8,586 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 3.14 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 -5.16% (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 Tokyo Printing Ink Manufacturing Co., Ltd.

Interest

Highest at JPY 18 MM

in the last five periods and Increased by 5.88% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)