Toyobo Co., Ltd. (3101) 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

DIC Corp.

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Kaneka Corp.

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Tokuyama Corp.

Toyobo Co., Ltd.

Toagosei Co., Ltd.

UBE Corp.

Kureha Corp.

Why is Toyobo Co., Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate -0.30% of over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.60% signifying low profitability per unit of shareholders funds

With a growth in Net Profit of 161.15%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
ROCE(HY) Highest at 5.47%
INTEREST COVERAGE RATIO(Q) Highest at 2,042.55
RAW MATERIAL COST(Y) Fallen by -15.54% (YoY)

With ROCE of 5.65%, it has a fair 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 80.70%, its profits have risen by 99.8% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Toyobo Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Toyobo Co., Ltd.

80.7%

1.51

38.22%

Japan Nikkei 225

75.22%

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)

4.36%

EBIT Growth (5y)

-0.30%

EBIT to Interest (avg)

13.22

Debt to EBITDA (avg)

5.10

Net Debt to Equity (avg)

1.19

Sales to Capital Employed (avg)

0.94

Tax Ratio

27.47%

Dividend Payout Ratio

176.03%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

4.97%

ROE (avg)

5.60%

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

0.64

EV to EBIT

14.73

EV to EBITDA

7.53

EV to Capital Employed

0.83

EV to Sales

0.88

PEG Ratio

0.09

Dividend Yield

ROCE (Latest)

5.65%

ROE (Latest)

6.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

20What is working for the Company

ROCE(HY)

Highest at 5.47%

INTEREST COVERAGE RATIO(Q)

Highest at 2,042.55

RAW MATERIAL COST(Y)

Fallen by -15.54% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 107.77 %

NET SALES(Q)

Highest at JPY 114,048 MM

OPERATING PROFIT(Q)

Highest at JPY 16,320 MM

OPERATING PROFIT MARGIN(Q)

Highest at 14.31 %

PRE-TAX PROFIT(Q)

Highest at JPY 7,689 MM

NET PROFIT(Q)

At JPY 3,383.91 MM has Grown at 75.49%

-10What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.54 times

INTEREST(Q)

Highest at JPY 799 MM

Here's what is working for Toyobo Co., Ltd.

Interest Coverage Ratio

Highest at 2,042.55

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at JPY 114,048 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 16,320 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 14.31 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 7,689 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 7,689 MM has Grown at 88.92%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 3,383.91 MM has Grown at 75.49%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at 107.77 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -15.54% (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 6,687 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 Toyobo Co., Ltd.

Interest

Highest at JPY 799 MM

in the last five periods and Increased by 9.45% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 2.54 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio