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.

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Fujikura Kasei Co., Ltd.

Japan Insulation Co., Ltd.

Nippon Felt Co., Ltd.

Taisei Lamick Co., Ltd.

Asahipen Corp.

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)

With a growth in Operating Profit of 67.51%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
ROCE(HY) Highest at 6.07%
INVENTORY TURNOVER RATIO(HY) Highest at 4.23 times
PRE-TAX PROFIT(Q) At JPY 758 MM has Grown at 142.17%

With ROCE of 6.82%, it has a very attractive valuation with a 0.71 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 -67.95%, its profits have risen by 107.7%
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -67.95% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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.

-67.95%

-0.65

92.22%

Japan Nikkei 225

85.83%

3.09

27.80%

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)

17.42

Debt to EBITDA (avg)

2.33

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

1.25

Tax Ratio

24.89%

Dividend Payout Ratio

42.70%

Pledged Shares

Institutional Holding

ROCE (avg)

1.87%

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

0.69

EV to EBIT

10.42

EV to EBITDA

6.11

EV to Capital Employed

0.71

EV to Sales

0.48

PEG Ratio

Dividend Yield

ROCE (Latest)

6.82%

ROE (Latest)

6.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

22What is working for the Company

ROCE(HY)

Highest at 6.07%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.23 times

PRE-TAX PROFIT(Q)

At JPY 758 MM has Grown at 142.17%

NET PROFIT(Q)

At JPY 826 MM has Grown at 218.62%

DIVIDEND PAYOUT RATIO(Y)

Highest at 2,215.57%

RAW MATERIAL COST(Y)

Fallen by -2.09% (YoY

CASH AND EQV(HY)

Highest at JPY 8,697 MM

DEBT-EQUITY RATIO (HY)

Lowest at 6.22 %

DIVIDEND PER SHARE(HY)

Highest at JPY 3.12

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 4,270.59

INTEREST(Q)

Highest at JPY 17 MM

OPERATING PROFIT(Q)

Lowest at JPY 726 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.89 %

EPS(Q)

Lowest at JPY 1.67

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

Pre-Tax Profit

At JPY 758 MM has Grown at 142.17%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 826 MM has Grown at 218.62%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 4.23 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at JPY 8,697 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 6.22 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend per share

Highest at JPY 3.12

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 2,215.57%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -2.09% (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

Depreciation

Highest at JPY 416 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Tokyo Printing Ink Manufacturing Co., Ltd.

Interest

At JPY 17 MM has Grown at 21.43%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 4,270.59

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 17 MM

in the last five periods and Increased by 21.43% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 726 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 5.89 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at JPY 1.67

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)