Sanken Electric Co., Ltd. (6707) 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

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Socionext, Inc.

Nikon Corp.

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Sanken Electric Co., Ltd.

Why is Sanken Electric Co., Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

With a fall in Net Sales of -22.12%, the company declared Very Negative results in Dec 25

PRE-TAX PROFIT(Q) At JPY -2,187 MM has Fallen at -164.02%
NET PROFIT(Q) At JPY -2,485 MM has Fallen at -191.48%
INTEREST COVERAGE RATIO(Q) Lowest at 167.11

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -4.63%, its profits have fallen by -129.2%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 36.73% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -4.63% returns

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 Other Electrical Equipment)

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

Is Sanken Electric Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sanken Electric Co., Ltd.

-4.63%

0.19

50.45%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.36%

EBIT Growth (5y)

-197.45%

EBIT to Interest (avg)

11.00

Debt to EBITDA (avg)

0.76

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

0.81

Tax Ratio

2.58%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

8.76%

ROE (avg)

7.94%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.36

EV to EBIT

-56.15

EV to EBITDA

30.37

EV to Capital Employed

1.34

EV to Sales

1.75

PEG Ratio

Dividend Yield

0.01%

ROCE (Latest)

-2.38%

ROE (Latest)

-1.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

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

3What is working for the Company

NET PROFIT(HY)

Higher at JPY -1,519 MM

-36What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY -2,187 MM has Fallen at -164.02%

NET PROFIT(Q)

At JPY -2,485 MM has Fallen at -191.48%

INTEREST COVERAGE RATIO(Q)

Lowest at 167.11

RAW MATERIAL COST(Y)

Grown by 29.68% (YoY

CASH AND EQV(HY)

Lowest at JPY 71,955 MM

NET SALES(Q)

Lowest at JPY 18,146 MM

INTEREST(Q)

Highest at JPY 225 MM

OPERATING PROFIT(Q)

Lowest at JPY 376 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.07 %

EPS(Q)

Lowest at JPY -106.1

Here's what is not working for Sanken Electric Co., Ltd.

Net Sales

At JPY 18,146 MM has Fallen at -22.12%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY -2,187 MM has Fallen at -164.02%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -2,485 MM has Fallen at -191.48%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 225 MM has Grown at 16.58%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 167.11

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 18,146 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 225 MM

in the last five periods and Increased by 16.58% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 376 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 2.07 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at JPY -106.1

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 71,955 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 29.68% (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