Sanoh Industrial Co., Ltd. (6584) 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

Nippon Seiki Co., Ltd.

Bando Chemical Industries Ltd.

Tachi-S Co., Ltd.

Futaba Industrial Co., Ltd.

Murakami Corp.

DaikyoNishikawa Corp.

Sanoh Industrial Co., Ltd.

Hi-Lex Corp.

Ichikoh Industries Ltd.

TPR Co., Ltd.

Unipres Corp.

Why is Sanoh Industrial Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 2.25% and Operating profit at -2.27% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 6.74% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.25% and Operating profit at -2.27% over the last 5 years

Negative results in Jun 25

NET PROFIT(9M) At JPY 2,726.83 MM has Grown at -29.09%

With ROCE of 7.97%, it has a very attractive valuation with a 0.64 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 10.73%, its profits have fallen by -26.8%
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 10.73% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sanoh Industrial Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Sanoh Industrial Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sanoh Industrial Co., Ltd.

9.89%

-0.47

36.74%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.25%

EBIT Growth (5y)

-2.27%

EBIT to Interest (avg)

6.44

Debt to EBITDA (avg)

1.55

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

2.06

Tax Ratio

48.44%

Dividend Payout Ratio

135.99%

Pledged Shares

Institutional Holding

ROCE (avg)

7.23%

ROE (avg)

6.74%

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

0.50

EV to EBIT

8.01

EV to EBITDA

3.35

EV to Capital Employed

0.64

EV to Sales

0.24

PEG Ratio

Dividend Yield

0.08%

ROCE (Latest)

7.97%

ROE (Latest)

8.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

10What is working for the Company

NET PROFIT(HY)

Higher at JPY 2,706.44 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 8.06%

INTEREST COVERAGE RATIO(Q)

Highest at 1,802.78

RAW MATERIAL COST(Y)

Fallen by -14.5% (YoY

CASH AND EQV(HY)

Highest at JPY 45,920 MM

OPERATING PROFIT(Q)

Highest at JPY 3,894 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.67 %

-2What is not working for the Company

NET PROFIT(9M)

At JPY 2,726.83 MM has Grown at -29.09%

Here's what is working for Sanoh Industrial Co., Ltd.

Interest Coverage Ratio

Highest at 1,802.78

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

Higher at JPY 2,706.44 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (JPY MM)

Debtors Turnover Ratio

Highest at 8.06% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Operating Profit

Highest at JPY 3,894 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 9.67 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at JPY 45,920 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -14.5% (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