Sankyo Co., Ltd. (6417) 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

Japan Cash Machine Co., Ltd.

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Tsuburaya Fields Holdings, Inc.

Tri Chemical Laboratories Inc.

Adeka Corp.

Sankyo Co., Ltd.

OIZUMI Corp.

Universal Entertainment Corp.

Nagaoka International Corp.

Toda Kogyo Corp.

Gamecard-Joyco Holdings, Inc.

Why is Sankyo Co., Ltd. ?

Strong Long Term Fundamental Strength with a 63.41% CAGR growth in Operating Profits

Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 106.06% signifying high profitability per unit of total capital (equity and debt)

With a fall in Net Sales of -39.17%, the company declared Very Negative results in Jun 26

The company has declared negative results for the last 2 consecutive quarters
NET SALES(Q) At JPY 33,571 MM has Fallen at -39.17%
ROCE(HY) Lowest at 14.41%
PRE-TAX PROFIT(Q) At JPY 11,108 MM has Fallen at -54.46%

With ROE of 21.66%, it has a very attractive valuation with a 1.45 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 -35.21%, its profits have risen by 5.4% ; the PEG ratio of the company is 1.3

Majority shareholders : FIIs

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 59.79% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -35.21% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sankyo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Diversified should be less than 30%

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

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

Is Sankyo Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Sankyo Co., Ltd.

-35.55%

215.59

24.83%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.23%

EBIT Growth (5y)

63.41%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.84

Sales to Capital Employed (avg)

0.73

Tax Ratio

26.86%

Dividend Payout Ratio

39.53%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

124.78%

ROE (avg)

12.89%

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

1.45

EV to EBIT

2.63

EV to EBITDA

2.53

EV to Capital Employed

2.42

EV to Sales

0.96

PEG Ratio

1.25

Dividend Yield

ROCE (Latest)

91.92%

ROE (Latest)

21.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.7% (YoY

-26What is not working for the Company

NET SALES(Q)

At JPY 33,571 MM has Fallen at -39.17%

ROCE(HY)

Lowest at 14.41%

PRE-TAX PROFIT(Q)

At JPY 11,108 MM has Fallen at -54.46%

NET PROFIT(Q)

At JPY 8,074 MM has Fallen at -53.72%

CASH AND EQV(HY)

Lowest at JPY 365,084 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.62 times

Here's what is working for Sankyo Co., Ltd.

Raw Material Cost

Fallen by 1.7% (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 Sankyo Co., Ltd.

Net Sales

At JPY 33,571 MM has Fallen at -39.17%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 11,108 MM has Fallen at -54.46%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 8,074 MM has Fallen at -53.72%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Cash and Eqv

Lowest at JPY 365,084 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 3.62 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio