Sanko Co., Ltd. (Nagano) (6964) 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

Ogura Clutch Co., Ltd.

SERENDIP Holdings Co. Ltd.

Mitsuchi Corp.

Diamond Electric Holdings Co., Ltd.

Nikki Co., Ltd.

Car Mate MFG Co., Ltd.

Sawafuji Electric Co., Ltd.

Sanko Co., Ltd. (Nagano)

J-MAX Co., Ltd.

Tein, Inc.

FALTEC Co., Ltd.

Why is Sanko Co., Ltd. (Nagano) ?

Poor Management Efficiency with a low ROE of 3.83%

The company has been able to generate a Return on Equity (avg) of 3.83% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -1.88% of over the last 5 years

INTEREST(HY) At JPY 2.48 MM has Grown at 499.52%
ROCE(HY) Lowest at 3.01%
RAW MATERIAL COST(Y) Grown by 8.94% (YoY)

With ROE of 3.66%, it has a very attractive valuation with a 0.33 Price to Book Value

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 16.44%, its profits have fallen by -18.5%
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 16.44% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

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 Auto Components & Equipments)

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

Is Sanko Co., Ltd. (Nagano) for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sanko Co., Ltd. (Nagano)

16.44%

0.65

18.45%

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)

2.72%

EBIT Growth (5y)

-1.88%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

1.10

Tax Ratio

30.49%

Dividend Payout Ratio

31.16%

Pledged Shares

Institutional Holding

ROCE (avg)

7.82%

ROE (avg)

3.83%

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

0.33

EV to EBIT

-1.59

EV to EBITDA

-0.60

EV to Capital Employed

-0.08

EV to Sales

-0.05

PEG Ratio

Dividend Yield

0.09%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

3.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

NET SALES(Q)

Highest at JPY 5,209.15 MM

OPERATING PROFIT(Q)

Highest at JPY 510.23 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.79 %

PRE-TAX PROFIT(Q)

At JPY 352.49 MM has Grown at 84.13%

NET PROFIT(Q)

At JPY 245.98 MM has Grown at 92.18%

-13What is not working for the Company

INTEREST(HY)

At JPY 2.48 MM has Grown at 499.52%

ROCE(HY)

Lowest at 3.01%

RAW MATERIAL COST(Y)

Grown by 8.94% (YoY

CASH AND EQV(HY)

Lowest at JPY 10,271.68 MM

DEBT-EQUITY RATIO (HY)

Highest at -31.04 %

Here's what is working for Sanko Co., Ltd. (Nagano)

Net Sales

Highest at JPY 5,209.15 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 5,209.15 MM has Grown at 20.43%

over average net sales of the previous four periods of JPY 4,325.43 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 510.23 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 9.79 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At JPY 352.49 MM has Grown at 84.13%

over average net sales of the previous four periods of JPY 191.44 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 245.98 MM has Grown at 92.18%

over average net sales of the previous four periods of JPY 128 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Here's what is not working for Sanko Co., Ltd. (Nagano)

Interest

At JPY 2.48 MM has Grown at 499.52%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 10,271.68 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -31.04 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 8.94% (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