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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Ise Chemicals Corp.

Toyo Gosei Co., Ltd.

Sakai Chemical Industry Co., Ltd.

Stella Chemifa Corp.

Tayca Corp.

Tanaka Chemical Corp.

C.I. Takiron Corp.

Why is Sakai Chemical Industry Co., Ltd. ?

Poor Management Efficiency with a low ROE of 5.10%

The company has been able to generate a Return on Equity (avg) of 5.10% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 10.98% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 5.10% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -0.35% and Operating profit at 10.98% over the last 5 years

Flat results in Jun 26

NET PROFIT(HY) At JPY 1,367.83 MM has Grown at -48.18%
RAW MATERIAL COST(Y) Grown by 9.1% (YoY)

Underperformed the market in the last 1 year

The stock has generated a return of 42.25% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 60.14%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

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

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sakai Chemical Industry Co., Ltd.

42.25%

0.80

56.51%

Japan Nikkei 225

60.14%

2.05

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.35%

EBIT Growth (5y)

10.98%

EBIT to Interest (avg)

53.88

Debt to EBITDA (avg)

0.71

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.84

Tax Ratio

36.15%

Dividend Payout Ratio

82.21%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

6.55%

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

0.99

EV to EBIT

12.31

EV to EBITDA

7.92

EV to Capital Employed

0.99

EV to Sales

1.02

PEG Ratio

0.26

Dividend Yield

ROCE (Latest)

8.06%

ROE (Latest)

8.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

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

8What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -6.31 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.47 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.24 times

NET SALES(Q)

Highest at JPY 21,466 MM

PRE-TAX PROFIT(Q)

Highest at JPY 3,034 MM

NET PROFIT(Q)

At JPY 2,089.17 MM has Grown at 81.38%

EPS(Q)

Highest at JPY 115.21

-4What is not working for the Company

NET PROFIT(HY)

At JPY 1,367.83 MM has Grown at -48.18%

RAW MATERIAL COST(Y)

Grown by 9.1% (YoY

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

Net Sales

Highest at JPY 21,466 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 3,034 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 3,034 MM has Grown at 53.87%

over average net sales of the previous four periods of JPY 1,971.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 2,089.17 MM has Grown at 81.38%

over average net sales of the previous four periods of JPY 1,151.8 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 115.21

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at -6.31 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.47 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.24 times

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 Sakai Chemical Industry Co., Ltd.

Raw Material Cost

Grown by 9.1% (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

Non Operating Income

Highest at JPY 0.47 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income