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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hisaka Works Ltd.

Ebara Jitsugyo Co., Ltd.

Tsubakimoto Kogyo Co., Ltd.

Shibaura Mechatronics Corp.

Zuiko Corp.

Shinwa Co., Ltd.

Rheon Automatic Machinery Co., Ltd.

Toyo Kanetsu KK

Aval Data Corp.

Nakano Refrigerators Co., Ltd.

Hirano Tecseed Co., Ltd.

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(Q) At JPY 47 MM has Grown at 30.56%
INTEREST COVERAGE RATIO(Q) Lowest at 2,772.34
DEBT-EQUITY RATIO (HY) Highest at 24.38 %

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 17.16%, its profits have fallen by -6%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 17.16% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

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?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Toyo Kanetsu KK

17.16%

1.04

23.59%

Japan Nikkei 225

28.54%

1.11

25.75%

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)

1.04

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

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Bullish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -9.73% (YoY

-18What is not working for the Company

INTEREST(Q)

At JPY 47 MM has Grown at 30.56%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,772.34

DEBT-EQUITY RATIO (HY)

Highest at 24.38 %

NET SALES(Q)

Lowest at JPY 12,675 MM

Here's what is working for Toyo Kanetsu KK

Raw Material Cost

Fallen by -9.73% (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 242 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 Toyo Kanetsu KK

Net Sales

At JPY 12,675 MM has Fallen at -16.16%

over average net sales of the previous four periods of JPY 15,118.5 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Interest

At JPY 47 MM has Grown at 30.56%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,772.34

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 12,675 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 47 MM

in the last five periods and Increased by 30.56% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 24.38 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio