Sanyo Electric Railway Co., Ltd. (9052) 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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Sotetsu Holdings, Inc.

Nankai Electric Railway Co., Ltd.

Sanyo Electric Railway Co., Ltd.

Nagoya Railroad Co., Ltd.

Why is Sanyo Electric Railway Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.34%

The company has been able to generate a Return on Capital Employed (avg) of 3.34% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -2.91% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.88% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -2.91% over the last 5 years

Negative results in Jun 26

INVENTORY TURNOVER RATIO(HY) Lowest at 4.63 times
INTEREST(Q) Highest at JPY 130 MM

With ROCE of 4.83%, it has a very expensive valuation with a 0.81 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 -3.95%, its profits have risen by 19.2% ; the PEG ratio of the company is 0.7
At the current price, the company has a high dividend yield of 0

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 Transport Services)

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

Is Sanyo Electric Railway Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sanyo Electric Railway Co., Ltd.

-3.95%

-0.48

13.16%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.91%

EBIT Growth (5y)

31.19%

EBIT to Interest (avg)

11.84

Debt to EBITDA (avg)

4.40

Net Debt to Equity (avg)

0.60

Sales to Capital Employed (avg)

0.39

Tax Ratio

28.85%

Dividend Payout Ratio

27.46%

Pledged Shares

Institutional Holding

ROCE (avg)

4.06%

ROE (avg)

5.88%

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

0.70

EV to EBIT

16.68

EV to EBITDA

9.10

EV to Capital Employed

0.81

EV to Sales

1.96

PEG Ratio

0.67

Dividend Yield

ROCE (Latest)

4.83%

ROE (Latest)

5.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

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

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.76% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 14.18 times

OPERATING PROFIT(Q)

Highest at JPY 2,569 MM

OPERATING PROFIT MARGIN(Q)

Highest at 25.33 %

PRE-TAX PROFIT(Q)

Highest at JPY 1,719 MM

NET PROFIT(Q)

Highest at JPY 1,183 MM

-11What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.63 times

INTEREST(Q)

Highest at JPY 130 MM

Here's what is working for Sanyo Electric Railway Co., Ltd.

Operating Profit

Highest at JPY 2,569 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 25.33 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 1,719 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,183 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Debtors Turnover Ratio

Highest at 14.18 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -5.76% (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 Sanyo Electric Railway Co., Ltd.

Interest

At JPY 130 MM has Grown at 14.04%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 130 MM

in the last five periods and Increased by 14.04% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 4.63 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio