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

Kyocera Corp.

Restar Corp.

Micronics Japan Co., Ltd.

Renesas Electronics Corp.

Rorze Corp.

ROHM Co., Ltd.

Socionext, Inc.

Ferrotec Holdings Corp.

Nikon Corp.

Sanken Electric Co., Ltd.

JSR Corp.

Why is Sanken Electric Co., Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

The company has declared negative results for the last 11 consecutive quarters

The company has declared negative results in Sep 23 after 9 consecutive negative quarters
NET PROFIT(HY) At JPY -8,877 MM has Grown at -76.92%
NET SALES(Q) At JPY 21,018 MM has Fallen at -17.67%
ROCE(HY) Lowest at -7.33%

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 39.76%, its profits have fallen by -2.1%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 39.76% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 75.22%

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, Medium Return

Absolute

Risk Adjusted

Volatility

Sanken Electric Co., Ltd.

39.76%

1.50

48.45%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-10.95%

EBIT Growth (5y)

13.98%

EBIT to Interest (avg)

11.00

Debt to EBITDA (avg)

0.76

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

0.73

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

1.19

EV to EBIT

-1712.46

EV to EBITDA

29.47

EV to Capital Employed

1.14

EV to Sales

2.22

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

-0.07%

ROE (Latest)

-8.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-37What is not working for the Company

NET PROFIT(HY)

At JPY -8,877 MM has Grown at -76.92%

NET SALES(Q)

At JPY 21,018 MM has Fallen at -17.67%

ROCE(HY)

Lowest at -7.33%

OPERATING PROFIT(Q)

Lowest at JPY -1,509 MM

RAW MATERIAL COST(Y)

Grown by 101.74% (YoY

CASH AND EQV(HY)

Lowest at JPY 71,309 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.59 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.72 times

INTEREST(Q)

Highest at JPY 258 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -7.18 %

EPS(Q)

Lowest at JPY -314.14

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

Net Profit

At JPY -8,877 MM has Grown at -76.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

At JPY 21,018 MM has Fallen at -17.67%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Interest

At JPY 258 MM has Grown at 14.67%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY -1,509 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (JPY MM)

Interest

Highest at JPY 258 MM

in the last five periods and Increased by 14.67% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at -7.18 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at JPY -314.14

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 71,309 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 1.59 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.72 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 101.74% (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