Sakurasaku Plus Co., Ltd. (7097) 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

Global Kids Company Corp.

Seigakusha Co., Ltd.

Brass Corp.

Sakurasaku Plus Co., Ltd.

Cocolonet Co., Ltd.

Ichishin Holdings Co., Ltd.

Kyoshin Co., Ltd.

Phil Company, Inc.

ESCRIT Inc.

Bestone.com Co., Ltd.

Clip Corp.

Why is Sakurasaku Plus Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 6.74%

The company has been able to generate a Return on Capital Employed (avg) of 6.74% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 42.93% of over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Capital Employed (avg) of 6.74% signifying low profitability per unit of total capital (equity and debt)

Healthy long term growth as Net Sales has grown by an annual rate of 17.15%

The company has declared Negative results for the last 3 consecutive quarters

NET SALES(Q) At JPY 4,023 MM has Fallen at -14.92%
NET PROFIT(Q) At JPY 86 MM has Fallen at -66.9%
INTEREST(Q) At JPY 16 MM has Grown at 33.33%

With ROCE of 16.96%, it has a fair valuation with a 1.79 Enterprise value to Capital Employed

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 26.14%, its profits have risen by 21.8% ; the PEG ratio of the company is 0.6

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sakurasaku Plus Co., Ltd. should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

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

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

Is Sakurasaku Plus Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Sakurasaku Plus Co., Ltd.

-100.0%

6.44

28.74%

Japan Nikkei 225

71.75%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.15%

EBIT Growth (5y)

42.93%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

4.53

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

1.61

Tax Ratio

1.18%

Dividend Payout Ratio

17.12%

Pledged Shares

Institutional Holding

ROCE (avg)

6.74%

ROE (avg)

16.20%

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

2.14

EV to EBIT

10.53

EV to EBITDA

7.50

EV to Capital Employed

1.79

EV to Sales

0.82

PEG Ratio

0.61

Dividend Yield

ROCE (Latest)

16.96%

ROE (Latest)

17.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

8What is working for the Company

NET PROFIT(HY)

At JPY 259 MM has Grown at 161.62%

ROCE(HY)

Highest at 13.53%

DIVIDEND PER SHARE(HY)

Highest at JPY 12.04

RAW MATERIAL COST(Y)

Fallen by -12.71% (YoY

-15What is not working for the Company

NET SALES(Q)

At JPY 4,023 MM has Fallen at -14.92%

NET PROFIT(Q)

At JPY 86 MM has Fallen at -66.9%

INTEREST(Q)

At JPY 16 MM has Grown at 33.33%

PRE-TAX PROFIT(Q)

At JPY 166 MM has Fallen at -47.39%

Here's what is working for Sakurasaku Plus Co., Ltd.

Dividend per share

Highest at JPY 12.04 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -12.71% (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 Sakurasaku Plus Co., Ltd.

Net Sales

At JPY 4,023 MM has Fallen at -14.92%

over average net sales of the previous four periods of JPY 4,728.5 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Net Profit

At JPY 86 MM has Fallen at -66.9%

over average net sales of the previous four periods of JPY 259.84 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 16 MM has Grown at 33.33%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 166 MM has Fallen at -47.39%

over average net sales of the previous four periods of JPY 315.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)