Why is SANTO Corp. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 5.78%
3
Positive results in Mar 26
- INVENTORY TURNOVER RATIO(HY) Highest at 34.52 times
- NET SALES(Q) Highest at JPY 3,146.34 MM
- OPERATING PROFIT(Q) Highest at JPY 263.86 MM
4
With ROE of 8.98%, it has a fair valuation with a 1.03 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 11.80%, its profits have risen by 230% ; the PEG ratio of the company is 0.1
5
Underperformed the market in the last 1 year
- The stock has generated a return of 11.80% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.12%
How much should you hold?
- Overall Portfolio exposure to SANTO Corp. should be less than 10%
- Overall Portfolio exposure to Construction should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is SANTO Corp. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
SANTO Corp.
11.8%
0.67
37.49%
Japan Nikkei 225
88.41%
3.12
27.27%
Quality key factors
Factor
Value
Sales Growth (5y)
10.50%
EBIT Growth (5y)
43.61%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.36
Sales to Capital Employed (avg)
2.20
Tax Ratio
33.31%
Dividend Payout Ratio
26.89%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
18.37%
ROE (avg)
5.78%
Valuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
1.03
EV to EBIT
4.66
EV to EBITDA
4.02
EV to Capital Employed
1.05
EV to Sales
0.22
PEG Ratio
0.05
Dividend Yield
NA
ROCE (Latest)
22.49%
ROE (Latest)
8.98%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bearish
Technical Movement
16What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 34.52 times
NET SALES(Q)
Highest at JPY 3,146.34 MM
OPERATING PROFIT(Q)
Highest at JPY 263.86 MM
PRE-TAX PROFIT(Q)
Highest at JPY 243.87 MM
NET PROFIT(Q)
Highest at JPY 157.1 MM
EPS(Q)
Highest at JPY 250.61
-12What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 11.36% (YoY
INTEREST(Q)
Highest at JPY 1.13 MM
Here's what is working for SANTO Corp.
Net Sales
At JPY 3,146.34 MM has Grown at 30.03%
over average net sales of the previous four periods of JPY 2,419.61 MMMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Pre-Tax Profit
At JPY 243.87 MM has Grown at 105.86%
over average net sales of the previous four periods of JPY 118.46 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Sales
Highest at JPY 3,146.34 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 263.86 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Pre-Tax Profit
Highest at JPY 243.87 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 157.1 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Net Profit
At JPY 157.1 MM has Grown at 97.87%
over average net sales of the previous four periods of JPY 79.39 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 250.61
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Inventory Turnover Ratio
Highest at 34.52 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Depreciation
Highest at JPY 21.45 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for SANTO Corp.
Interest
At JPY 1.13 MM has Grown at 96.53%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 1.13 MM
in the last five periods and Increased by 96.53% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Raw Material Cost
Grown by 11.36% (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






