Why is Sala Corp. ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of 2.72% and Operating profit at 2.60% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 6.93% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 2.72% and Operating profit at 2.60% over the last 5 years
3
Negative results in May 25
- ROCE(HY) Lowest at 5.94%
- INTEREST(Q) Highest at JPY 89 MM
4
With ROCE of 5.45%, it has a very attractive valuation with a 0.82 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 26.42%, its profits have risen by 29.9% ; the PEG ratio of the company is 0.4
How much should you hold?
- Overall Portfolio exposure to Sala Corp. should be less than 10%
- 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, Medium Return
Absolute
Risk Adjusted
Volatility
Sala Corp.
26.42%
1.29
23.85%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
2.72%
EBIT Growth (5y)
2.60%
EBIT to Interest (avg)
36.76
Debt to EBITDA (avg)
2.42
Net Debt to Equity (avg)
0.47
Sales to Capital Employed (avg)
1.78
Tax Ratio
29.78%
Dividend Payout Ratio
36.63%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.95%
ROE (avg)
6.93%
Valuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
0.73
EV to EBIT
15.02
EV to EBITDA
7.59
EV to Capital Employed
0.82
EV to Sales
0.41
PEG Ratio
0.39
Dividend Yield
NA
ROCE (Latest)
5.45%
ROE (Latest)
6.25%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
11What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 15,100 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 61.29%
RAW MATERIAL COST(Y)
Fallen by 1.64% (YoY
CASH AND EQV(HY)
Highest at JPY 54,545 MM
DIVIDEND PER SHARE(HY)
Highest at JPY 7.56
PRE-TAX PROFIT(Q)
At JPY 2,906 MM has Grown at 56.09%
NET PROFIT(Q)
Highest at JPY 2,229.17 MM
-13What is not working for the Company
ROCE(HY)
Lowest at 5.94%
INTEREST(Q)
Highest at JPY 89 MM
Here's what is working for Sala Corp.
Operating Cash Flow
Highest at JPY 15,100 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Dividend Payout Ratio
Highest at 61.29% and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Pre-Tax Profit
At JPY 2,906 MM has Grown at 56.09%
over average net sales of the previous four periods of JPY 1,861.75 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 2,229.17 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Net Profit
At JPY 2,229.17 MM has Grown at 74.11%
over average net sales of the previous four periods of JPY 1,280.32 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Cash and Eqv
Highest at JPY 54,545 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Dividend per share
Highest at JPY 7.56
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Raw Material Cost
Fallen by 1.64% (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 89 MM has Grown at 11.25%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 89 MM
in the last five periods and Increased by 11.25% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






