Dentsu Soken, Inc. (4812) 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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Why is Dentsu Soken, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 16.24%

Healthy long term growth as Net Sales has grown by an annual rate of 8.69% and Operating profit at 13.43%
Company has very low debt and has enough cash to service the debt requirements

Flat results in Mar 26

INVENTORY TURNOVER RATIO(HY) Lowest at 703.41 times
DEBTORS TURNOVER RATIO(HY) Lowest at 4.48 times
INTEREST(Q) Highest at JPY 12 MM

With ROE of 16.35%, it has a fair valuation with a 3.82 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 -71.01%, its profits have risen by 8%

Below par performance in long term as well as near term

Along with generating -71.01% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dentsu Soken, Inc. should be less than 10%
Overall Portfolio exposure to Commercial Services & Supplies should be less than 30%

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

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

Is Dentsu Soken, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dentsu Soken, Inc.

-70.58%

-0.85

73.43%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.69%

EBIT Growth (5y)

13.43%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

1.69

Tax Ratio

29.30%

Dividend Payout Ratio

47.72%

Pledged Shares

Institutional Holding

ROCE (avg)

24.80%

ROE (avg)

16.24%

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

3.82

EV to EBIT

16.37

EV to EBITDA

13.63

EV to Capital Employed

4.05

EV to Sales

2.27

PEG Ratio

Dividend Yield

ROCE (Latest)

24.72%

ROE (Latest)

16.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Bullish

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

RAW MATERIAL COST(Y)

Fallen by -1.44% (YoY

CASH AND EQV(HY)

Highest at JPY 76,314 MM

NET SALES(Q)

Highest at JPY 43,820 MM

-11What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 703.41 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.48 times

INTEREST(Q)

Highest at JPY 12 MM

Here's what is working for Dentsu Soken, Inc.

Net Sales

Highest at JPY 43,820 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 76,314 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.44% (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 Dentsu Soken, Inc.

Interest

Highest at JPY 12 MM

in the last five periods and Increased by 9.09% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 703.41 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.48 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio