Yamato Kogyo Co., Ltd. (5444) 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

Okaya & Co., Ltd.

Yamato Kogyo Co., Ltd.

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Toyota Tsusho Corp.

Yodogawa Steel Works, Ltd.

Daido Steel Co., Ltd.

Kobe Steel, Ltd.

Tokyo Steel Manufacturing Co., Ltd.

NIPPON STEEL CORP.

JFE Holdings, Inc.

Sanyo Special Steel Co., Ltd.

Why is Yamato Kogyo Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of -1.55% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at JPY 52,299 MM
NET SALES(HY) At JPY 78,822 MM has Grown at -14.51%
RAW MATERIAL COST(Y) Grown by 26.34% (YoY)

With ROE of 5.98%, it has a very attractive valuation with a 1.04 Price to Book Value

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 49.00%, its profits have fallen by -55%
At the current price, the company has a high dividend yield of 0

Consistent Returns over the last 3 years

Along with generating 49.00% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Yamato Kogyo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

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

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

Is Yamato Kogyo Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Yamato Kogyo Co., Ltd.

49.0%

1.61

31.65%

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)

-1.55%

EBIT Growth (5y)

-0.05%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

0.32

Tax Ratio

36.92%

Dividend Payout Ratio

79.60%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

5.16%

ROE (avg)

10.11%

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

1.04

EV to EBIT

31.49

EV to EBITDA

16.52

EV to Capital Employed

1.06

EV to Sales

2.12

PEG Ratio

Dividend Yield

0.01%

ROCE (Latest)

3.38%

ROE (Latest)

5.98%

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

15What is working for the Company

PRE-TAX PROFIT(Q)

Highest at JPY 19,957 MM

NET PROFIT(Q)

Highest at JPY 14,786.62 MM

EPS(Q)

Highest at JPY 242.45

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 52,299 MM

NET SALES(HY)

At JPY 78,822 MM has Grown at -14.51%

RAW MATERIAL COST(Y)

Grown by 26.34% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -38.27 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.87 times

Here's what is working for Yamato Kogyo Co., Ltd.

Net Profit

At JPY 14,786.62 MM has Grown at 154.85%

over average net sales of the previous four periods of JPY 5,802.1 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 19,957 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 19,957 MM has Grown at 98.46%

over average net sales of the previous four periods of JPY 10,056 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 14,786.62 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 242.45

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Here's what is not working for Yamato Kogyo Co., Ltd.

Net Sales

At JPY 78,822 MM has Grown at -14.51%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Operating Cash Flow

Lowest at JPY 52,299 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Debt-Equity Ratio

Highest at -38.27 %

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

Debtors Turnover Ratio

Lowest at 4.87 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 26.34% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales