SANRITSU Corp. (9366) 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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PRAP Japan, Inc.

HIP Corp.

SYS Holdings Co., Ltd. (Japan)

SANRITSU Corp.

Global Information, Inc.

Kyoei Security Service Co., Ltd.

GMO TECH, Inc.

Why is SANRITSU Corp. ?

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 8.54% of over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 6.22% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 8.54% of over the last 5 years

Flat results in Mar 26

CASH AND EQV(HY) Lowest at JPY 4,632.6 MM
DEBT-EQUITY RATIO (HY) Highest at 62.04 %
INTEREST(Q) Highest at JPY 53.09 MM

With ROCE of 5.34%, it has a very attractive valuation with a 0.70 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 24.73%, its profits have fallen by -31.6%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 24.73% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SANRITSU Corp. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is SANRITSU Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

SANRITSU Corp.

24.73%

0.58

23.09%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.33%

EBIT Growth (5y)

8.54%

EBIT to Interest (avg)

9.58

Debt to EBITDA (avg)

2.48

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

1.06

Tax Ratio

29.99%

Dividend Payout Ratio

29.44%

Pledged Shares

Institutional Holding

ROCE (avg)

6.70%

ROE (avg)

6.22%

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

0.55

EV to EBIT

13.17

EV to EBITDA

6.88

EV to Capital Employed

0.70

EV to Sales

0.61

PEG Ratio

Dividend Yield

ROCE (Latest)

5.34%

ROE (Latest)

3.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bearish

OBV

Mildly Bullish

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

15What is working for the Company

ROCE(HY)

Highest at 5.76%

NET PROFIT(Q)

At JPY 227.11 MM has Grown at 116.88%

RAW MATERIAL COST(Y)

Fallen by -4.11% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 44.73 times

PRE-TAX PROFIT(Q)

At JPY 288.5 MM has Grown at 88.14%

-13What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 4,632.6 MM

DEBT-EQUITY RATIO (HY)

Highest at 62.04 %

INTEREST(Q)

Highest at JPY 53.09 MM

Here's what is working for SANRITSU Corp.

Net Profit

At JPY 227.11 MM has Grown at 116.88%

over average net sales of the previous four periods of JPY 104.72 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 288.5 MM has Grown at 88.14%

over average net sales of the previous four periods of JPY 153.35 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Inventory Turnover Ratio

Highest at 44.73 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -4.11% (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

Depreciation

Highest at JPY 236.83 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for SANRITSU Corp.

Interest

At JPY 53.09 MM has Grown at 22.41%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 53.09 MM

in the last five periods and Increased by 22.41% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 4,632.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 62.04 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio