Why is SANTO Corp. ?
1
Poor Management Efficiency with a low ROE of 5.78%
- The company has been able to generate a Return on Equity (avg) of 5.78% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 5.78%
- The company has been able to generate a Return on Equity (avg) of 5.78% signifying low profitability per unit of shareholders funds
3
Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 5.78%
4
Flat results in Mar 26
- RAW MATERIAL COST(Y) Grown by 11.36% (YoY)
- INTEREST(Q) Highest at JPY 1.13 MM
5
With ROE of 9.04%, it has a fair valuation with a 0.82 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 9.40%, its profits have risen by 86.7% ; the PEG ratio of the company is 0.1
6
Underperformed the market in the last 1 year
- The stock has generated a return of 9.40% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%
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?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
SANTO Corp.
9.4%
0.56
38.23%
Japan Nikkei 225
59.79%
2.03
29.50%
Quality key factors
Factor
Value
Sales Growth (5y)
9.82%
EBIT Growth (5y)
24.99%
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
31.50%
Dividend Payout Ratio
26.89%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
19.71%
ROE (avg)
5.78%
Valuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
0.82
EV to EBIT
3.22
EV to EBITDA
2.77
EV to Capital Employed
0.69
EV to Sales
0.15
PEG Ratio
0.10
Dividend Yield
NA
ROCE (Latest)
21.45%
ROE (Latest)
9.04%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
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






