Sanrin Co., Ltd. (7486) 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

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Daimaru Enawin Co., Ltd.

Green Cross Co., Ltd.

Sanrin Co., Ltd.

Why is Sanrin Co., Ltd. ?

Poor Management Efficiency with a low ROE of 3.78%

The company has been able to generate a Return on Equity (avg) of 3.78% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -7.31% of over the last 5 years

With a fall in Net Sales of -36.84%, the company declared Very Negative results in Jun 25

INTEREST(HY) At JPY 10 MM has Grown at 150%
NET SALES(Q) At JPY 6,180 MM has Fallen at -19.81%
NET PROFIT(Q) At JPY 70 MM has Fallen at -69.02%

With ROE of 4.33%, it has a very attractive valuation with a 0.40 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 10.26%, its profits have risen by 39.2% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 10.26% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sanrin Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sanrin Co., Ltd.

10.26%

0.34

10.69%

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)

2.01%

EBIT Growth (5y)

-7.31%

EBIT to Interest (avg)

85.15

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.15

Sales to Capital Employed (avg)

1.40

Tax Ratio

30.36%

Dividend Payout Ratio

35.76%

Pledged Shares

Institutional Holding

ROCE (avg)

4.46%

ROE (avg)

3.78%

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

0.40

EV to EBIT

7.91

EV to EBITDA

3.64

EV to Capital Employed

0.29

EV to Sales

0.17

PEG Ratio

0.24

Dividend Yield

ROCE (Latest)

3.70%

ROE (Latest)

4.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bearish

No Trend

OBV

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 11.21%

-21What is not working for the Company

INTEREST(HY)

At JPY 10 MM has Grown at 150%

NET SALES(Q)

At JPY 6,180 MM has Fallen at -19.81%

NET PROFIT(Q)

At JPY 70 MM has Fallen at -69.02%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,200

PRE-TAX PROFIT(Q)

At JPY 169 MM has Fallen at -47.43%

RAW MATERIAL COST(Y)

Grown by 8.47% (YoY

OPERATING PROFIT(Q)

Lowest at JPY 60 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.97 %

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

Debtors Turnover Ratio

Highest at 11.21%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Interest

At JPY 10 MM has Grown at 150%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 6,180 MM has Fallen at -19.81%

over average net sales of the previous four periods of JPY 7,706.5 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Net Profit

At JPY 70 MM has Fallen at -69.02%

over average net sales of the previous four periods of JPY 225.98 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 1,200

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At JPY 169 MM has Fallen at -47.43%

over average net sales of the previous four periods of JPY 321.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Operating Profit

Lowest at JPY 60 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 0.97 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 8.47% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at JPY 1.76 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income