Sakai Chemical Industry Co., Ltd. (4078) 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

Riken Technos Corp.

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Sakai Chemical Industry Co., Ltd.

Dainichiseika Color & Chemicals Mfg. Co., Ltd.

Koatsu Gas Kogyo Co., Ltd.

Stella Chemifa Corp.

Kanto Denka Kogyo Co., Ltd.

Toyo Gosei Co., Ltd.

Tayca Corp.

Tanaka Chemical Corp.

Why is Sakai Chemical Industry Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 55.59

Poor long term growth as Net Sales has grown by an annual rate of -0.57% and Operating profit at 8.70% over the last 5 years

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

RAW MATERIAL COST(Y) Fallen by -3.52% (YoY)
INVENTORY TURNOVER RATIO(HY) Highest at 2.28 times
OPERATING PROFIT(Q) Highest at JPY 3,048 MM

With ROE of 7.01%, it has a very attractive valuation with a 0.57 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 25.00%, its profits have risen by 1205.8% ; the PEG ratio of the company is 0
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 25.00% 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 Sakai Chemical Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is Sakai Chemical Industry Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sakai Chemical Industry Co., Ltd.

24.26%

0.90

31.46%

Japan Nikkei 225

36.73%

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)

-0.57%

EBIT Growth (5y)

8.70%

EBIT to Interest (avg)

55.59

Debt to EBITDA (avg)

0.92

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.82

Tax Ratio

13.80%

Dividend Payout Ratio

43.67%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

5.91%

ROE (avg)

5.10%

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

0.57

EV to EBIT

8.31

EV to EBITDA

5.24

EV to Capital Employed

0.60

EV to Sales

0.60

PEG Ratio

0.01

Dividend Yield

0.02%

ROCE (Latest)

7.25%

ROE (Latest)

7.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

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

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.52% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.28 times

OPERATING PROFIT(Q)

Highest at JPY 3,048 MM

OPERATING PROFIT MARGIN(Q)

Highest at 14.5 %

NET PROFIT(Q)

Highest at JPY 2,393 MM

-9What is not working for the Company

INTEREST(HY)

At JPY 84 MM has Grown at 23.53%

EPS(Q)

Lowest at JPY -1.7

Here's what is working for Sakai Chemical Industry Co., Ltd.

Operating Profit

Highest at JPY 3,048 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 14.5 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at JPY 2,393 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 2.28 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -3.52% (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

Depreciation

Highest at JPY 966 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Sakai Chemical Industry Co., Ltd.

Interest

At JPY 84 MM has Grown at 23.53%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

EPS

Lowest at JPY -1.7

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)