Santec Holdings Corp. (6777) 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

Allied Telesis Holdings K.K.

TOA Corp. (6809)

Furuno Electric Co., Ltd.

NIPPON ANTENNA CO., LTD.

Noritsu Koki Co., Ltd.

Harada Industry Co., Ltd.

TECHNO HORIZON Co., Ltd.

Icom, Inc.

Santec Holdings Corp.

SAXA Holdings, Inc.

Iwatsu Electric Co., Ltd.

Why is Santec Holdings Corp. ?

High Management Efficiency with a high ROE of 18.85%

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Net Sales has grown by an annual rate of 30.36% and Operating profit at 50.92%

Negative results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 54,923.54
DEBTORS TURNOVER RATIO(HY) Lowest at 5.99%
INTEREST(Q) Highest at JPY 4.07 MM

With ROE of 25.16%, it has a very attractive valuation with a 2.73 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 51.82%, its profits have risen by 30.5% ; the PEG ratio of the company is 0.4

Market Beating performance in long term as well as near term

Along with generating 51.82% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Santec Holdings Corp. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Santec Holdings Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Santec Holdings Corp.

50.54%

0.41

56.33%

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)

30.36%

EBIT Growth (5y)

50.92%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.46

Sales to Capital Employed (avg)

0.99

Tax Ratio

32.09%

Dividend Payout Ratio

48.73%

Pledged Shares

Institutional Holding

ROCE (avg)

41.47%

ROE (avg)

18.85%

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

2.73

EV to EBIT

6.64

EV to EBITDA

6.09

EV to Capital Employed

4.20

EV to Sales

2.03

PEG Ratio

0.36

Dividend Yield

ROCE (Latest)

63.19%

ROE (Latest)

25.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Bullish

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

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.07% (YoY

CASH AND EQV(HY)

Highest at JPY 26,136.93 MM

DEBT-EQUITY RATIO (HY)

Lowest at -48.3 %

INVENTORY TURNOVER RATIO(HY)

Highest at 3.82%

OPERATING PROFIT(Q)

Highest at JPY 2,235.39 MM

OPERATING PROFIT MARGIN(Q)

Highest at 36.13 %

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 54,923.54

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.99%

INTEREST(Q)

Highest at JPY 4.07 MM

Here's what is working for Santec Holdings Corp.

Operating Profit

Highest at JPY 2,235.39 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 36.13 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at JPY 26,136.93 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -48.3 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 3.82%

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 -3.07% (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

Here's what is not working for Santec Holdings Corp.

Interest Coverage Ratio

Lowest at 54,923.54 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At JPY 4.07 MM has Grown at 113.65%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 4.07 MM

in the last five periods and Increased by 113.65% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 5.99%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio