Toyo Kanetsu KK (6369) 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

Ebara Jitsugyo Co., Ltd.

Hisaka Works Ltd.

Tsubakimoto Kogyo Co., Ltd.

Shinwa Co., Ltd.

Shibaura Mechatronics Corp.

Rheon Automatic Machinery Co., Ltd.

Toyo Kanetsu KK

Hirano Tecseed Co., Ltd.

Zuiko Corp.

Nakano Refrigerators Co., Ltd.

Aval Data Corp.

Why is Toyo Kanetsu KK ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 36.19

Poor long term growth as Net Sales has grown by an annual rate of 5.39% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At JPY 90 MM has Grown at 60.71%
INTEREST COVERAGE RATIO(Q) Lowest at 2,374.42
PRE-TAX PROFIT(Q) At JPY 786 MM has Fallen at -38.47%

With ROCE of 8.91%, it has a very attractive valuation with a 0.83 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 40.71%, its profits have fallen by -6%
At the current price, the company has a high dividend yield of 0

Market Beating performance in long term as well as near term

Along with generating 40.71% returns in the last 1 year, the stock has outperformed 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 Toyo Kanetsu KK should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Toyo Kanetsu KK for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Toyo Kanetsu KK

-100.0%

-0.49

55.74%

Japan Nikkei 225

38.94%

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)

5.39%

EBIT Growth (5y)

9.77%

EBIT to Interest (avg)

36.19

Debt to EBITDA (avg)

1.40

Net Debt to Equity (avg)

0.19

Sales to Capital Employed (avg)

1.06

Tax Ratio

28.35%

Dividend Payout Ratio

50.05%

Pledged Shares

Institutional Holding

ROCE (avg)

7.02%

ROE (avg)

8.00%

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

0.80

EV to EBIT

9.31

EV to EBITDA

7.73

EV to Capital Employed

0.83

EV to Sales

0.64

PEG Ratio

Dividend Yield

0.01%

ROCE (Latest)

8.91%

ROE (Latest)

9.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -11.79% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 6.05 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.03 times

-14What is not working for the Company

INTEREST(HY)

At JPY 90 MM has Grown at 60.71%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,374.42

PRE-TAX PROFIT(Q)

At JPY 786 MM has Fallen at -38.47%

NET PROFIT(Q)

At JPY 490 MM has Fallen at -46.37%

Here's what is working for Toyo Kanetsu KK

Debt-Equity Ratio

Lowest at 6.05 %

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 3.03 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 -11.79% (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 Toyo Kanetsu KK

Interest

At JPY 90 MM has Grown at 60.71%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,374.42

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At JPY 786 MM has Fallen at -38.47%

over average net sales of the previous four periods of JPY 1,277.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 490 MM has Fallen at -46.37%

over average net sales of the previous four periods of JPY 913.65 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)