Sanko Gosei Ltd. (7888) 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

Sumitomo Riko Co. Ltd.

Sanko Gosei Ltd.

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Fukoku Co., Ltd.

FP Corp.

Chiyoda Integre Co., Ltd.

Fujikura Composite, Inc.

LEC, Inc. (Japan)

Teikoku Sen-I Co., Ltd.

Why is Sanko Gosei Ltd. ?

High Management Efficiency with a high ROCE of 9.73%

Healthy long term growth as Net Sales has grown by an annual rate of 10.79%

Positive results in Nov 25

RAW MATERIAL COST(Y) Fallen by 1.83% (YoY)
CASH AND EQV(HY) Highest at JPY 28,629 MM
DIVIDEND PER SHARE(HY) Highest at JPY 4.62

With ROCE of 13.46%, it has a very attractive valuation with a 0.69 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 27.74%, its profits have risen by 63.8% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Sanko Gosei Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Sanko Gosei Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sanko Gosei Ltd.

27.74%

0.67

41.96%

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)

10.79%

EBIT Growth (5y)

29.32%

EBIT to Interest (avg)

8.72

Debt to EBITDA (avg)

1.28

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

1.85

Tax Ratio

23.21%

Dividend Payout Ratio

18.97%

Pledged Shares

Institutional Holding

ROCE (avg)

10.20%

ROE (avg)

8.13%

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

0.60

EV to EBIT

5.15

EV to EBITDA

2.85

EV to Capital Employed

0.69

EV to Sales

0.30

PEG Ratio

0.08

Dividend Yield

ROCE (Latest)

13.46%

ROE (Latest)

12.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

9What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.83% (YoY

CASH AND EQV(HY)

Highest at JPY 28,629 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 4.62

NET SALES(Q)

Highest at JPY 26,493 MM

OPERATING PROFIT(Q)

Highest at JPY 3,335 MM

OPERATING PROFIT MARGIN(Q)

Highest at 12.59 %

PRE-TAX PROFIT(Q)

Highest at JPY 2,019 MM

NET PROFIT(Q)

Highest at JPY 1,419.44 MM

EPS(Q)

Highest at JPY 44.75

-3What is not working for the Company

INTEREST(Q)

At JPY 127 MM has Grown at 36.56%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.62 times

Here's what is working for Sanko Gosei Ltd.

Net Sales

Highest at JPY 26,493 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 3,335 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 12.59 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 2,019 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 1,419.44 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 44.75

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 28,629 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 4.62

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by 1.83% (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

Depreciation

Highest at JPY 1,169 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Sanko Gosei Ltd.

Interest

At JPY 127 MM has Grown at 36.56%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 4.62 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio