Sakurai Ltd. (7255) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

MORITA HOLDINGS CORP.

Nissan Shatai Co., Ltd.

Daytona Corp.

Mazda Motor Corp.

Isuzu Motors Ltd.

Yamaha Motor Co., Ltd.

Kanematsu Engineering Co., Ltd.

Sakurai Ltd.

Hino Motors, Ltd.

Shimano, Inc.

Mitsubishi Motors Corp.

Why is Sakurai Ltd. ?

Poor Management Efficiency with a low ROCE of 0.75%

The company has been able to generate a Return on Capital Employed (avg) of 0.75% signifying low profitability per unit of total capital (equity and debt)

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -24.01

Poor long term growth as Net Sales has grown by an annual rate of -4.48% and Operating profit at 33.32% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -24.01
The company has been able to generate a Return on Equity (avg) of 1.82% signifying low profitability per unit of shareholders funds

Flat results in Jun 25

INTEREST(9M) At JPY 8.88 MM has Grown at 13.18%

With ROE of 4.36%, it has a expensive valuation with a 0.46 Price to Book Value

Over the past year, while the stock has generated a return of 16.08%, its profits have risen by 350.5% ; the PEG ratio of the company is 0

Underperformed the market in the last 1 year

The stock has generated a return of 16.08% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sakurai Ltd. should be less than 10%
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 Sakurai Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sakurai Ltd.

16.08%

0.52

28.33%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.48%

EBIT Growth (5y)

33.32%

EBIT to Interest (avg)

-24.01

Debt to EBITDA (avg)

1.45

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

0.81

Tax Ratio

1.73%

Dividend Payout Ratio

16.60%

Pledged Shares

Institutional Holding

ROCE (avg)

0.75%

ROE (avg)

1.82%

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

0.46

EV to EBIT

15.67

EV to EBITDA

2.84

EV to Capital Employed

0.50

EV to Sales

0.52

PEG Ratio

0.03

Dividend Yield

ROCE (Latest)

3.17%

ROE (Latest)

4.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Bearish

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

21What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 119.32 MM has Grown at 3,442.76%

NET PROFIT(Q)

At JPY 118.02 MM has Grown at 3,665.83%

RAW MATERIAL COST(Y)

Fallen by -89.05% (YoY

CASH AND EQV(HY)

Highest at JPY 2,851.66 MM

DEBT-EQUITY RATIO (HY)

Lowest at -0.63 %

INVENTORY TURNOVER RATIO(HY)

Highest at 7.81%

NET SALES(Q)

At JPY 1,444.21 MM has Grown at 27.87%

-6What is not working for the Company

INTEREST(9M)

At JPY 8.88 MM has Grown at 13.18%

Here's what is working for Sakurai Ltd.

Pre-Tax Profit

At JPY 119.32 MM has Grown at 3,442.76%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 118.02 MM has Grown at 3,665.83%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 1,444.21 MM has Grown at 27.87%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 2,851.66 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -0.63 %

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 7.81%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -89.05% (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 Sakurai Ltd.

Interest

At JPY 5.58 MM has Grown at 19.83%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)