Sala Corp.

  • Market Cap: Small Cap
  • Industry: Gas
  • ISIN: JP3310350008
JPY
1,048.00
13 (1.26%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Hokkaido Gas Co., Ltd.
Nippon Gas Co., Ltd. (8174)
Tokyo Gas Co., Ltd.
Shizuoka Gas Co., Ltd.
Osaka Gas Co., Ltd.
Sala Corp.
K&O Energy Group, Inc.
TOKAI Holdings Corp.
Hiroshima Gas Co., Ltd.
TOHO GAS Co., Ltd.
Saibu Gas Holdings Co., Ltd.

Why is Sala Corp. ?

1
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 3.51% and Operating profit at 4.44% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 6.62% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 3.51% and Operating profit at 4.44% over the last 5 years
3
Flat results in Feb 26
  • DEBTORS TURNOVER RATIO(HY) Lowest at 6.29 times
  • INTEREST(Q) Highest at JPY 115 MM
4
With ROCE of 6.13%, it has a very attractive valuation with a 0.83 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 13.42%, its profits have risen by 5.3% ; the PEG ratio of the company is 2.6
5
Underperformed the market in the last 1 year
  • The stock has generated a return of 13.42% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.12%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Sala Corp. should be less than 10%
  2. Overall Portfolio exposure to Gas should be less than 30%

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

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

Is Sala Corp. for you?

Low Risk, Low Return

Absolute
Risk Adjusted
Volatility
Sala Corp.
13.42%
1.13
25.15%
Japan Nikkei 225
88.41%
3.12
27.27%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
3.51%
EBIT Growth (5y)
4.44%
EBIT to Interest (avg)
36.76
Debt to EBITDA (avg)
2.42
Net Debt to Equity (avg)
0.37
Sales to Capital Employed (avg)
1.70
Tax Ratio
29.78%
Dividend Payout Ratio
35.00%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.95%
ROE (avg)
6.62%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
0.77
EV to EBIT
13.50
EV to EBITDA
7.03
EV to Capital Employed
0.83
EV to Sales
0.40
PEG Ratio
2.56
Dividend Yield
NA
ROCE (Latest)
6.13%
ROE (Latest)
5.71%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company
OPERATING CASH FLOW(Y)

Highest at JPY 15,481 MM

RAW MATERIAL COST(Y)

Fallen by -5.79% (YoY

CASH AND EQV(HY)

Highest at JPY 57,865 MM

NET SALES(Q)

Highest at JPY 66,243 MM

OPERATING PROFIT(Q)

Highest at JPY 6,202 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.36 %

PRE-TAX PROFIT(Q)

Highest at JPY 4,517 MM

NET PROFIT(Q)

Highest at JPY 2,970.24 MM

EPS(Q)

Highest at JPY 49.64

-12What is not working for the Company
DEBTORS TURNOVER RATIO(HY)

Lowest at 6.29 times

INTEREST(Q)

Highest at JPY 115 MM

Here's what is working for Sala Corp.

Operating Cash Flow
Highest at JPY 15,481 MM and Grown
In each year in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Pre-Tax Profit
At JPY 4,517 MM has Grown at 133.29%
over average net sales of the previous four periods of JPY 1,936.25 MM
MOJO Watch
Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit
At JPY 2,970.24 MM has Grown at 133.81%
over average net sales of the previous four periods of JPY 1,270.35 MM
MOJO Watch
Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales
Highest at JPY 66,243 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit
Highest at JPY 6,202 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin
Highest at 9.36 %
in the last five periods
MOJO Watch
Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit
Highest at JPY 4,517 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit
Highest at JPY 2,970.24 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS
Highest at JPY 49.64
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv
Highest at JPY 57,865 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost
Fallen by -5.79% (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 Sala Corp.

Interest
At JPY 115 MM has Grown at 18.56%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest
Highest at JPY 115 MM
in the last five periods and Increased by 18.56% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio
Lowest at 6.29 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio