Sankyo Seiko Co., Ltd. (8018) 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

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Sankyo Seiko Co., Ltd.

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Teijin Ltd.

Why is Sankyo Seiko Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 50.67

Low Debt Company with Strong Long Term Fundamental Strength

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

ROCE(HY) Lowest at 2.56%
CASH AND EQV(HY) Lowest at JPY 18,234 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 4.11 times

With ROE of 4.23%, it has a very attractive valuation with a 0.58 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 31.39%, its profits have fallen by -16.9% ; the PEG ratio of the company is 12.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sankyo Seiko Co., Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

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

Is Sankyo Seiko Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sankyo Seiko Co., Ltd.

31.39%

0.63

28.19%

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)

-0.66%

EBIT Growth (5y)

78.69%

EBIT to Interest (avg)

50.67

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

0.42

Tax Ratio

26.12%

Dividend Payout Ratio

49.94%

Pledged Shares

Institutional Holding

ROCE (avg)

6.47%

ROE (avg)

5.67%

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

0.58

EV to EBIT

14.45

EV to EBITDA

8.40

EV to Capital Employed

0.54

EV to Sales

1.13

PEG Ratio

12.28

Dividend Yield

ROCE (Latest)

3.76%

ROE (Latest)

4.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

No Trend

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

8What is working for the Company

PRE-TAX PROFIT(Q)

Highest at JPY 2,591 MM

NET PROFIT(Q)

Highest at JPY 1,801.79 MM

EPS(Q)

Highest at JPY 46.43

-14What is not working for the Company

ROCE(HY)

Lowest at 2.56%

CASH AND EQV(HY)

Lowest at JPY 18,234 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.11 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.63 times

INTEREST(Q)

Highest at JPY 19 MM

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

Pre-Tax Profit

Highest at JPY 2,591 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 2,591 MM has Grown at 112.9%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,801.79 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 1,801.79 MM has Grown at 107.48%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 46.43

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

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

Interest

At JPY 19 MM has Grown at 11.76%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 19 MM

in the last five periods and Increased by 11.76% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 18,234 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 4.11 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 5.63 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at JPY 0.86 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income