SAKURA KCS Corp. (4761) 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

Japan Process Development Co., Ltd.

Last One Mile Co., Ltd.

Cyber Com Co., Ltd.

PCI Holdings, Inc.

Photosynth, Inc.

Jimoty, Inc.

SAKURA KCS Corp.

Asahi Intelligence Service Co., Ltd.

Nihon Jyoho Create Co., Ltd.

DLE, Inc.

Tokyo Nissan Computer System Co., Ltd.

Why is SAKURA KCS Corp. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 71.23

Poor long term growth as Net Sales has grown by an annual rate of -1.11% over the last 5 years

The company declared positive results in Mar'25 after negative results in Dec'24

RAW MATERIAL COST(Y) Fallen by -1.83% (YoY)

With ROE of 7.22%, it has a very attractive valuation with a 0.73 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 8.82%, its profits have risen by 60.3% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 8.82% 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 SAKURA KCS Corp. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is SAKURA KCS Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

SAKURA KCS Corp.

8.82%

-0.59

41.27%

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)

-1.11%

EBIT Growth (5y)

12.05%

EBIT to Interest (avg)

71.23

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

1.19

Tax Ratio

28.46%

Dividend Payout Ratio

31.30%

Pledged Shares

Institutional Holding

ROCE (avg)

9.95%

ROE (avg)

4.79%

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

0.73

EV to EBIT

6.38

EV to EBITDA

4.30

EV to Capital Employed

0.62

EV to Sales

0.39

PEG Ratio

0.17

Dividend Yield

ROCE (Latest)

9.69%

ROE (Latest)

7.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly 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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.83% (YoY

-15What is not working for the Company

NET PROFIT(HY)

At JPY 402 MM has Grown at -36.59%

INTEREST(Q)

At JPY 7 MM has Grown at 16.67%

CASH AND EQV(HY)

Lowest at JPY 14,358 MM

DEBT-EQUITY RATIO (HY)

Highest at -26.04 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 28.16 times

Here's what is working for SAKURA KCS Corp.

Raw Material Cost

Fallen by -1.83% (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 SAKURA KCS Corp.

Interest

At JPY 7 MM has Grown at 16.67%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 402 MM has Grown at -36.59%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Cash and Eqv

Lowest at JPY 14,358 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -26.04 %

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

Inventory Turnover Ratio

Lowest at 28.16 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio