Sakai Moving Service Co., Ltd. (9039) 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

Zero Co., Ltd.

Seino Holdings Co., Ltd.

The Shibusawa Warehouse Co., Ltd.

Sakai Moving Service Co., Ltd.

Loginet Japan Co., Ltd.

Enshu Truck Co., Ltd.

Maruzen Showa Unyu Co., Ltd.

Midac Holdings Co., Ltd.

K.R.S. Corp.

NIKKON Holdings Co., Ltd.

Tonami Holdings Co., Ltd.

Why is Sakai Moving Service Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 4.34% and Operating profit at 4.59% over the last 5 years

The company has declared Negative results for the last 7 consecutive quarters

ROCE(HY) Lowest at 8.86%
INVENTORY TURNOVER RATIO(HY) Lowest at 34.4 times
DEBTORS TURNOVER RATIO(HY) Lowest at 11.16 times

With ROE of 8.77%, it has a very attractive valuation with a 1.22 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 8.16%, its profits have risen by 6.3% ; the PEG ratio of the company is 2.2

Underperformed the market in the last 1 year

The stock has generated a return of 8.16% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 81.96%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sakai Moving Service Co., Ltd. should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

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

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

Is Sakai Moving Service Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sakai Moving Service Co., Ltd.

7.7%

1.18

16.62%

Japan Nikkei 225

81.96%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.34%

EBIT Growth (5y)

4.59%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

1.23

Tax Ratio

33.50%

Dividend Payout Ratio

45.00%

Pledged Shares

Institutional Holding

0.15%

ROCE (avg)

19.60%

ROE (avg)

9.67%

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

1.22

EV to EBIT

7.82

EV to EBITDA

6.79

EV to Capital Employed

1.27

EV to Sales

0.80

PEG Ratio

2.22

Dividend Yield

ROCE (Latest)

16.29%

ROE (Latest)

8.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.92% (YoY

NET SALES(Q)

Highest at JPY 37,494 MM

EPS(Q)

Highest at JPY 87.29

-12What is not working for the Company

ROCE(HY)

Lowest at 8.86%

INVENTORY TURNOVER RATIO(HY)

Lowest at 34.4 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 11.16 times

INTEREST(Q)

Highest at JPY 10 MM

Here's what is working for Sakai Moving Service Co., Ltd.

Net Sales

Highest at JPY 37,494 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

EPS

Highest at JPY 87.29

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by 1.92% (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 507 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 Moving Service Co., Ltd.

Interest

At JPY 10 MM has Grown at 42.86%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 10 MM

in the last five periods and Increased by 42.86% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 34.4 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 11.16 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at JPY 0.08 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income