Yuken Kogyo Co. Ltd. (6393) 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

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OVAL Corp.

Nakakita Seisakusho Co., Ltd.

Yoshitake Inc

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Yuken Kogyo Co. Ltd.

A-One Seimitsu, Inc.

Nakanishi Manufacturing Co., Ltd.

Why is Yuken Kogyo Co. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.07% and Operating profit at 9.67% over the last 5 years

Negative results in Dec 25

OPERATING CASH FLOW(Y) Lowest at JPY 1,631.53 MM
INTEREST(Q) At JPY 76.36 MM has Grown at 13.99%
INTEREST COVERAGE RATIO(Q) Lowest at 855

With ROE of 6.35%, it has a very attractive valuation with a 0.50 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 13.49%, its profits have risen by 37.6% ; the PEG ratio of the company is 0.2
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 13.49% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Yuken Kogyo Co. Ltd. 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 Yuken Kogyo Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Yuken Kogyo Co. Ltd.

13.49%

1.23

23.82%

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)

5.07%

EBIT Growth (5y)

9.67%

EBIT to Interest (avg)

7.13

Debt to EBITDA (avg)

0.24

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.04

Tax Ratio

24.67%

Dividend Payout Ratio

46.03%

Pledged Shares

Institutional Holding

ROCE (avg)

6.24%

ROE (avg)

6.79%

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

0.50

EV to EBIT

6.55

EV to EBITDA

3.84

EV to Capital Employed

0.52

EV to Sales

0.38

PEG Ratio

0.21

Dividend Yield

0.02%

ROCE (Latest)

7.88%

ROE (Latest)

6.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

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

3What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 2.52 times

CASH AND EQV(HY)

Highest at JPY 14,919.55 MM

-20What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 1,631.53 MM

INTEREST(Q)

At JPY 76.36 MM has Grown at 13.99%

INTEREST COVERAGE RATIO(Q)

Lowest at 855

RAW MATERIAL COST(Y)

Grown by 13.37% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 15.77 %

OPERATING PROFIT(Q)

Lowest at JPY 652.85 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.1 %

PRE-TAX PROFIT(Q)

Fallen at -32.03%

Here's what is working for Yuken Kogyo Co. Ltd.

Inventory Turnover Ratio

Highest at 2.52 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at JPY 14,919.55 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

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

Operating Cash Flow

Lowest at JPY 1,631.53 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)

Interest

At JPY 76.36 MM has Grown at 13.99%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 855

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 652.85 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 8.1 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -32.03%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Debt-Equity Ratio

Highest at 15.77 %

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

Raw Material Cost

Grown by 13.37% (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