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Sakai Heavy Industries, Ltd.

  • Market Cap: Small Cap
  • Industry: Automobiles
  • ISIN: JP3313200002
JPY
2,166.00
18 (0.84%)

Aug 13

TKS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Yamabiko Corp.
Namura Shipbuilding Co., Ltd.
Nippon Sharyo, Ltd.
HOKUETSU INDUSTRIES CO., LTD.
Nikko Co., Ltd. (6306)
KONDOTEC INC.
Daihatsu Diesel Mfg. Co., Ltd.
Giken Ltd.
Okabe Co., Ltd.
Sakai Heavy Industries, Ltd.
Iseki & Co., Ltd.

Why is Sakai Heavy Industries, Ltd. ?

1
Poor Management Efficiency with a low ROE of 5.22%
  • The company has been able to generate a Return on Equity (avg) of 5.22% signifying low profitability per unit of shareholders funds
2
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 7.35
  • Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 7.35
  • The company has been able to generate a Return on Equity (avg) of 5.22% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 5.19% and Operating profit at 20.23% over the last 5 years
  • INTEREST(9M) At JPY 245.48 MM has Grown at 5.81%
  • INTEREST COVERAGE RATIO(Q) Lowest at 210.55
  • CASH AND EQV(HY) Lowest at JPY 12,538.1 MM
4
With ROE of 1.59%, it has a very attractive valuation with a 0.60 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 1.75%, its profits have fallen by -75.1%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Sakai Heavy Industries, Ltd. should be less than 10%
  2. Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is Sakai Heavy Industries, Ltd. for you?

Low Risk, Low Return

Absolute
Risk Adjusted
Volatility
Sakai Heavy Industries, Ltd.
2.41%
-1.36
20.79%
Japan Nikkei 225
58.07%
1.98
29.31%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
5.19%
EBIT Growth (5y)
20.23%
EBIT to Interest (avg)
7.67
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.09
Sales to Capital Employed (avg)
0.85
Tax Ratio
30.04%
Dividend Payout Ratio
51.96%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.33%
ROE (avg)
5.22%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
38
Industry P/E
Price to Book Value
0.60
EV to EBIT
17.68
EV to EBITDA
9.81
EV to Capital Employed
0.57
EV to Sales
0.60
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
3.20%
ROE (Latest)
1.59%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Sideways
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company
NET PROFIT(HY)

Higher at JPY 1,269.31 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.4 times

-21What is not working for the Company
INTEREST(9M)

At JPY 245.48 MM has Grown at 5.81%

INTEREST COVERAGE RATIO(Q)

Lowest at 210.55

CASH AND EQV(HY)

Lowest at JPY 12,538.1 MM

DEBT-EQUITY RATIO (HY)

Highest at -4.85 %

NET SALES(Q)

Lowest at JPY 5,620.94 MM

OPERATING PROFIT(Q)

Lowest at JPY 122.34 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.18 %

PRE-TAX PROFIT(Q)

Lowest at JPY 23.32 MM

NET PROFIT(Q)

Lowest at JPY -16.16 MM

EPS(Q)

Lowest at JPY -1.88

Here's what is working for Sakai Heavy Industries, Ltd.

Debtors Turnover Ratio
Highest at 4.4 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation
Highest at JPY 194.77 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 Heavy Industries, Ltd.

Net Sales
At JPY 5,620.94 MM has Fallen at -18.36%
over average net sales of the previous four periods of JPY 6,885.35 MM
MOJO Watch
Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit
At JPY 23.32 MM has Fallen at -96.31%
over average net sales of the previous four periods of JPY 631.79 MM
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit
At JPY -16.16 MM has Fallen at -103.67%
over average net sales of the previous four periods of JPY 440.78 MM
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio
Lowest at 210.55
in the last five periods
MOJO Watch
The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest
At JPY 245.48 MM has Grown at 5.81%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales
Lowest at JPY 5,620.94 MM
in the last five periods
MOJO Watch
Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit
Lowest at JPY 122.34 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin
Lowest at 2.18 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit
Lowest at JPY 23.32 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit
Lowest at JPY -16.16 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS
Lowest at JPY -1.88
in the last five periods
MOJO Watch
Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv
Lowest at JPY 12,538.1 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio
Highest at -4.85 %
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

Non Operating Income
Highest at JPY 6.6 MM
in the last five periods
MOJO Watch
Increased income from non business activities may not be sustainable

Non Operating income

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