Sakura Rubber Co., Ltd. (5189) 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

Sakura Rubber Co., Ltd.

SANKO TECHNO CO., LTD.

Create Corp.

AVIX, Inc.

Takemoto Yohki Co., Ltd.

Sagami Rubber Industries Co., Ltd.

Muto Seiko Co.

Asahi Kagaku Kogyo Co., Ltd.

Tensho Electric Industries Co., Ltd.

Nitchitsu Co., Ltd.

BALMUDA, Inc.

Why is Sakura Rubber Co., Ltd. ?

Poor Management Efficiency with a low ROE of 4.18%

The company has been able to generate a Return on Equity (avg) of 4.18% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 19.42% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 4.18% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 19.42% of over the last 5 years

Positive results in Jun 26

PRE-TAX PROFIT(Q) At JPY 727.17 MM has Grown at 641.1%
NET PROFIT(Q) At JPY 495.27 MM has Grown at 634.4%
ROCE(HY) Highest at 13.25%

With ROE of 7.98%, it has a very attractive valuation with a 0.64 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 59.53%, its profits have risen by 89.4% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sakura Rubber Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Sakura Rubber Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sakura Rubber Co., Ltd.

-100.0%

1.23

44.04%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.29%

EBIT Growth (5y)

19.42%

EBIT to Interest (avg)

14.47

Debt to EBITDA (avg)

0.28

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

1.10

Tax Ratio

36.32%

Dividend Payout Ratio

29.04%

Pledged Shares

Institutional Holding

ROCE (avg)

7.37%

ROE (avg)

4.18%

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

0.64

EV to EBIT

6.88

EV to EBITDA

5.26

EV to Capital Employed

0.69

EV to Sales

0.55

PEG Ratio

0.09

Dividend Yield

ROCE (Latest)

10.00%

ROE (Latest)

7.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

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

19What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 727.17 MM has Grown at 641.1%

NET PROFIT(Q)

At JPY 495.27 MM has Grown at 634.4%

ROCE(HY)

Highest at 13.25%

RAW MATERIAL COST(Y)

Fallen by -57.47% (YoY

EPS(Q)

Highest at JPY 256

-10What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 6,175.67 MM

INTEREST(Q)

Highest at JPY 18.33 MM

Here's what is working for Sakura Rubber Co., Ltd.

Pre-Tax Profit

At JPY 727.17 MM has Grown at 641.1%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 495.27 MM has Grown at 634.4%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

EPS

Highest at JPY 256

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -57.47% (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 Rubber Co., Ltd.

Interest

Highest at JPY 18.33 MM

in the last five periods and Increased by 7.79% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 6,175.67 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents