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.

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Bestone.com Co., Ltd.

Sakurasaku Plus Co., Ltd.

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Ichishin Holdings Co., Ltd.

Brass Corp.

Phil Company, Inc.

ESCRIT Inc.

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)

Flat results in Apr 26

NET SALES(HY) At JPY 9,387 MM has Grown at -12.28%
RAW MATERIAL COST(Y) Grown by 9.81% (YoY)
INTEREST(Q) Highest at JPY 21 MM

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 24.32%, its profits have risen by 21.8% ; the PEG ratio of the company is 0.6

Underperformed the market in the last 1 year

The stock has generated a return of 24.32% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.12%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sakurasaku Plus Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Sakurasaku Plus Co., Ltd.

24.32%

6.71

28.97%

Japan Nikkei 225

88.41%

3.12

27.27%

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

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

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

6What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 687 MM has Grown at 109.29%

CASH AND EQV(HY)

Highest at JPY 5,351 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 74.9 times

NET SALES(Q)

At JPY 5,364 MM has Grown at 12.3%

NET PROFIT(Q)

At JPY 572.5 MM has Grown at 112.56%

-6What is not working for the Company

NET SALES(HY)

At JPY 9,387 MM has Grown at -12.28%

RAW MATERIAL COST(Y)

Grown by 9.81% (YoY

INTEREST(Q)

Highest at JPY 21 MM

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

Pre-Tax Profit

At JPY 687 MM has Grown at 109.29%

over average net sales of the previous four periods of JPY 328.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Sales

At JPY 5,364 MM has Grown at 12.3%

over average net sales of the previous four periods of JPY 4,776.5 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

At JPY 572.5 MM has Grown at 112.56%

over average net sales of the previous four periods of JPY 269.34 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 5,351 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 74.9 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Sakurasaku Plus Co., Ltd.

Interest

At JPY 21 MM has Grown at 31.25%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 21 MM

in the last five periods and Increased by 31.25% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 9.81% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales