SANKO TECHNO CO., LTD. (3435) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kuriyama Holdings Corp.

Sanko Gosei Ltd.

Fujikura Composite, Inc.

Nichirin Co., Ltd.

Muto Seiko Co.

Fukoku Co., Ltd.

Chiyoda Integre Co., Ltd.

LEC, Inc. (Japan)

SANKO TECHNO CO., LTD.

Teikoku Sen-I Co., Ltd.

BALMUDA, Inc.

Why is SANKO TECHNO CO., LTD. ?

Company has very low debt and has enough cash to service the debt requirements

The company has declared Negative results for the last 8 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 5,336.88
NET PROFIT(HY) At JPY 361.58 MM has Grown at -40.36%
ROCE(HY) Lowest at 6.1%

With ROE of 5.45%, it has a very attractive valuation with a 0.54 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 14.67%, its profits have fallen by -33.5%

Underperformed the market in the last 1 year

The stock has generated a return of 14.67% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SANKO TECHNO CO., 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 TECHNO CO., LTD. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

SANKO TECHNO CO., LTD.

14.67%

0.15

21.26%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.82%

EBIT Growth (5y)

-3.20%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

1.06

Tax Ratio

28.02%

Dividend Payout Ratio

26.75%

Pledged Shares

Institutional Holding

ROCE (avg)

11.95%

ROE (avg)

7.70%

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

0.54

EV to EBIT

7.44

EV to EBITDA

5.62

EV to Capital Employed

0.53

EV to Sales

0.45

PEG Ratio

Dividend Yield

ROCE (Latest)

7.14%

ROE (Latest)

5.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

RAW MATERIAL COST(Y)

Fallen by -5.01% (YoY

CASH AND EQV(HY)

Highest at JPY 8,541.99 MM

DEBT-EQUITY RATIO (HY)

Lowest at -4.65 %

-24What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 5,336.88

NET PROFIT(HY)

At JPY 361.58 MM has Grown at -40.36%

ROCE(HY)

Lowest at 6.1%

NET SALES(Q)

Lowest at JPY 4,871.09 MM

INTEREST(Q)

Highest at JPY 7.06 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 280.67 MM

Here's what is working for SANKO TECHNO CO., LTD.

Cash and Eqv

Highest at JPY 8,541.99 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -4.65 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -5.01% (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 SANKO TECHNO CO., LTD.

Interest Coverage Ratio

Lowest at 5,336.88 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At JPY 7.06 MM has Grown at 19.51%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 361.58 MM has Grown at -40.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 4,871.09 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Sales

At JPY 4,871.09 MM has Fallen at -8.31%

over average net sales of the previous four periods of JPY 5,312.6 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 7.06 MM

in the last five periods and Increased by 19.51% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Lowest at JPY 280.67 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)