Sankyo Frontier Co., Ltd. (9639) 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

Tokyu Construction Co., Ltd.

KATITAS Co., Ltd.

Asanuma Corp.

Token Corp.

Takamatsu Construction Group Co. Ltd.

HASEKO Corp.

Nishimatsu Construction Co., Ltd.

Sankyo Frontier Co., Ltd.

Nagawa Co., Ltd.

Tama Home Co., Ltd.

Pressance Corp.

Why is Sankyo Frontier Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 12.98%

Poor long term growth as Operating profit has grown by an annual rate of 6.40%

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(9M) At JPY 15 MM has Grown at 25%
ROCE(HY) Lowest at 10.32%
DEBTORS TURNOVER RATIO(HY) Lowest at 4.79%

With ROE of 11.28%, it has a very attractive valuation with a 0.92 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 -1.75%, its profits have risen by 1.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.75% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sankyo Frontier Co., Ltd. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

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

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

Is Sankyo Frontier Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sankyo Frontier Co., Ltd.

-1.75%

-0.48

10.44%

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)

4.16%

EBIT Growth (5y)

6.40%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.19

Tax Ratio

30.93%

Dividend Payout Ratio

34.34%

Pledged Shares

Institutional Holding

ROCE (avg)

22.61%

ROE (avg)

12.98%

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

0.92

EV to EBIT

4.08

EV to EBITDA

2.52

EV to Capital Employed

0.91

EV to Sales

0.72

PEG Ratio

Dividend Yield

ROCE (Latest)

22.40%

ROE (Latest)

11.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly 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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-26What is not working for the Company

INTEREST(9M)

At JPY 15 MM has Grown at 25%

ROCE(HY)

Lowest at 10.32%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.79%

NET SALES(Q)

Lowest at JPY 11,911 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 1,192 MM

NET PROFIT(Q)

Lowest at JPY 820 MM

EPS(Q)

Lowest at JPY 36.9

Here's what is not working for Sankyo Frontier Co., Ltd.

Net Sales

At JPY 11,911 MM has Fallen at -20.25%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Interest

At JPY 6 MM has Grown at 20%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 1,192 MM has Fallen at -49.49%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Sales

Lowest at JPY 11,911 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

Lowest at JPY 1,192 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 820 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

Fallen at -44.22%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 36.9

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Lowest at 4.79%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio