Yonkyu Co., Ltd. (9955) 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

Kadoya Sesame Mills Inc.

WELLNEO SUGAR Co. Ltd.

Fuji Nihon Seito Corp.

Hokuto Corp.

Chubushiryo Co., Ltd.

Feed One Co., Ltd.

J-Oil Mills, Inc.

Sato Foods Co., Ltd. (Niigata)

Yonkyu Co., Ltd.

Nippon Beet Sugar Manufacturing Co., Ltd.

Yukiguni Maitake Co., Ltd.

Why is Yonkyu 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 2.10% over the last 5 years

The company has declared Negative results for the last 10 consecutive quarters

ROCE(HY) Lowest at 3.01%
INTEREST COVERAGE RATIO(Q) Lowest at 10,108.37
RAW MATERIAL COST(Y) Grown by 5.86% (YoY)

With ROE of 3.64%, it has a expensive valuation with a 0.70 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 37.01%, its profits have fallen by -13.4%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Yonkyu Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Agricultural Products should be less than 30%

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

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

Is Yonkyu Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Yonkyu Co., Ltd.

37.01%

1.36

17.70%

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)

2.10%

EBIT Growth (5y)

1.92%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.34

Sales to Capital Employed (avg)

1.00

Tax Ratio

33.22%

Dividend Payout Ratio

17.29%

Pledged Shares

Institutional Holding

ROCE (avg)

11.20%

ROE (avg)

5.26%

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

0.70

EV to EBIT

8.95

EV to EBITDA

6.28

EV to Capital Employed

0.54

EV to Sales

0.31

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

6.08%

ROE (Latest)

3.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-30What is not working for the Company

ROCE(HY)

Lowest at 3.01%

INTEREST COVERAGE RATIO(Q)

Lowest at 10,108.37

RAW MATERIAL COST(Y)

Grown by 5.86% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.82%

NET SALES(Q)

Lowest at JPY 10,045.16 MM

INTEREST(Q)

Highest at JPY 4.13 MM

OPERATING PROFIT(Q)

Lowest at JPY 417.78 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.16 %

PRE-TAX PROFIT(Q)

Lowest at JPY 379.48 MM

NET PROFIT(Q)

Lowest at JPY 254.48 MM

EPS(Q)

Lowest at JPY 20.79

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

Interest Coverage Ratio

Lowest at 10,108.37

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 379.48 MM has Fallen at -50.48%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 254.48 MM has Fallen at -51.23%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 10,045.16 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Sales

Fallen at -11.81%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 4.13 MM

in the last five periods and Increased by 7.91% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 417.78 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 4.16 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 379.48 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 254.48 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 20.79

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 7.82%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 5.86% (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