Unitika Ltd. (3103) 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

GSI Creos Corp.

Fujibo Holdings, Inc.

KOMATSU MATERE Co., Ltd.

Sumitomo Seika Chemicals Co., Ltd.

Transaction Co., Ltd.

HAGIHARA INDUSTRIES, Inc.

Sankyo Seiko Co., Ltd.

The Japan Wool Textile Co., Ltd.

Unitika Ltd.

KURABO INDUSTRIES LTD.

Shikibo Ltd.

Why is Unitika Ltd. ?

Poor Management Efficiency with a low ROCE of 3.55%

The company has been able to generate a Return on Capital Employed (avg) of 3.55% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 2.71% and Operating profit at 11.75% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Capital Employed (avg) of 3.55% 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 2.71% and Operating profit at 11.75% over the last 5 years

Flat results in Jun 26

NET SALES(Q) At JPY 24,108 MM has Fallen at -22.01%
NET PROFIT(HY) At JPY 5,152.18 MM has Grown at -38.86%

With ROE of 60.88%, it has a very attractive valuation with a 1.43 Price to Book Value

Over the past year, while the stock has generated a return of 418.78%, its profits have risen by 210.8% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Unitika Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

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

Is Unitika Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Unitika Ltd.

497.49%

2.01

149.38%

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)

2.71%

EBIT Growth (5y)

11.75%

EBIT to Interest (avg)

2.94

Debt to EBITDA (avg)

9.77

Net Debt to Equity (avg)

5.08

Sales to Capital Employed (avg)

1.03

Tax Ratio

42.92%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.92%

ROE (avg)

22.53%

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

1.43

EV to EBIT

7.65

EV to EBITDA

5.66

EV to Capital Employed

1.32

EV to Sales

0.63

PEG Ratio

0.01

Dividend Yield

0.09%

ROCE (Latest)

17.27%

ROE (Latest)

60.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

15What is working for the Company

ROCE(HY)

Highest at 44.14%

INTEREST COVERAGE RATIO(Q)

Highest at 1,557.73

PRE-TAX PROFIT(Q)

At JPY 4,366 MM has Grown at 143.64%

NET PROFIT(Q)

At JPY 4,120.36 MM has Grown at 210.48%

RAW MATERIAL COST(Y)

Fallen by -32.07% (YoY

CASH AND EQV(HY)

Highest at JPY 92,897 MM

DEBT-EQUITY RATIO (HY)

Lowest at 16.52 %

DEBTORS TURNOVER RATIO(HY)

Highest at 5.96 times

OPERATING PROFIT(Q)

Highest at JPY 4,938 MM

OPERATING PROFIT MARGIN(Q)

Highest at 20.48 %

-12What is not working for the Company

NET SALES(Q)

At JPY 24,108 MM has Fallen at -22.01%

NET PROFIT(HY)

At JPY 5,152.18 MM has Grown at -38.86%

Here's what is working for Unitika Ltd.

Interest Coverage Ratio

Highest at 1,557.73

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At JPY 4,366 MM has Grown at 143.64%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 4,120.36 MM has Grown at 210.48%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Profit

Highest at JPY 4,938 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 20.48 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at JPY 92,897 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 16.52 %

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 5.96 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 -32.07% (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 Unitika Ltd.

Net Sales

At JPY 24,108 MM has Fallen at -22.01%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)