CK San-Etsu Co., Ltd. (5757) 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

Maruichi Steel Tube Ltd.

Nippon Thompson Co., Ltd.

Topy Industries, Ltd.

ALCONIX Corp.

Nachi-Fujikoshi Corp.

Oiles Corp.

Neturen Co., Ltd.

Ryobi Ltd.

CK San-Etsu Co., Ltd.

Nippon Denko Co., Ltd.

Tsubaki Nakashima Co., Ltd

Why is CK San-Etsu Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 16.75%

Healthy long term growth as Net Sales has grown by an annual rate of 10.64%
Company has very low debt and has enough cash to service the debt requirements

The company has declared Negative results for the last 3 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 9,842.31
OPERATING PROFIT(Q) Lowest at JPY 2,559 MM
OPERATING PROFIT MARGIN(Q) Lowest at 7.22 %

With ROCE of 17.90%, it has a very attractive valuation with a 0.64 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 2.80%, its profits have risen by 16.4% ; the PEG ratio of the company is 0.3

Underperformed the market in the last 1 year

The stock has generated a return of 2.80% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CK San-Etsu 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 CK San-Etsu Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

CK San-Etsu Co., Ltd.

2.8%

0.03

28.07%

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)

10.64%

EBIT Growth (5y)

18.73%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.76

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

1.99

Tax Ratio

30.78%

Dividend Payout Ratio

14.61%

Pledged Shares

Institutional Holding

ROCE (avg)

16.77%

ROE (avg)

14.92%

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

0.61

EV to EBIT

3.57

EV to EBITDA

3.00

EV to Capital Employed

0.64

EV to Sales

0.29

PEG Ratio

0.28

Dividend Yield

ROCE (Latest)

17.90%

ROE (Latest)

13.18%

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

No Trend

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

5What is working for the Company

ROCE(HY)

Highest at 13.84%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.77%

NET SALES(Q)

Highest at JPY 35,427 MM

-20What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 9,842.31

OPERATING PROFIT(Q)

Lowest at JPY 2,559 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.22 %

RAW MATERIAL COST(Y)

Grown by 33.9% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 32.22 %

INTEREST(Q)

Highest at JPY 26 MM

Here's what is working for CK San-Etsu Co., Ltd.

Net Sales

Highest at JPY 35,427 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 35,427 MM has Grown at 13.27%

over average net sales of the previous four periods of JPY 31,277 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debtors Turnover Ratio

Highest at 3.77%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for CK San-Etsu Co., Ltd.

Interest Coverage Ratio

Lowest at 9,842.31 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At JPY 26 MM has Grown at 52.94%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 2,559 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 7.22 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Interest

Highest at JPY 26 MM

in the last five periods and Increased by 52.94% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 32.22 %

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 33.9% (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