Sanyo Homes Corp. (1420) 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

e'grand Co., Ltd.

NIHON HOUSE HOLDINGS Co., Ltd.

Sanyo Homes Corp.

NISSHIN GROUP HOLDINGS Co., Ltd.

Grandy House Corp.

First Juken Co., Ltd.

The Global Ltd.

AVANTIA Co., Ltd.

Japan Living Warranty, Inc.

First-corporation Inc.

REVOLUTION CO., LTD. (Yamaguchi)

Why is Sanyo Homes Corp. ?

Poor Management Efficiency with a low ROCE of 2.69%

The company has been able to generate a Return on Capital Employed (avg) of 2.69% 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 -2.29% and Operating profit at 62.86% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 2.95% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -2.29% and Operating profit at 62.86% over the last 5 years

Flat results in Mar 26

DIVIDEND PAYOUT RATIO(Y) Lowest at 18%
INTEREST(Q) Highest at JPY 80.75 MM

With ROCE of 3.67%, it has a very attractive valuation with a 0.79 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 -10.84%, its profits have fallen by -50.5%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sanyo Homes Corp. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

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

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

Is Sanyo Homes Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sanyo Homes Corp.

-100.0%

-1.16

12.96%

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)

-2.29%

EBIT Growth (5y)

62.86%

EBIT to Interest (avg)

4.45

Debt to EBITDA (avg)

145.38

Net Debt to Equity (avg)

1.20

Sales to Capital Employed (avg)

1.27

Tax Ratio

29.04%

Dividend Payout Ratio

20.38%

Pledged Shares

Institutional Holding

ROCE (avg)

3.86%

ROE (avg)

2.95%

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

0.57

EV to EBIT

21.54

EV to EBITDA

18.90

EV to Capital Employed

0.79

EV to Sales

0.52

PEG Ratio

Dividend Yield

ROCE (Latest)

3.67%

ROE (Latest)

3.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

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

14What is working for the Company

ROCE(HY)

Highest at 8.68%

RAW MATERIAL COST(Y)

Fallen by -14.13% (YoY

NET SALES(Q)

Highest at JPY 22,598.93 MM

OPERATING PROFIT(Q)

Highest at JPY 2,418 MM

OPERATING PROFIT MARGIN(Q)

Highest at 10.7 %

PRE-TAX PROFIT(Q)

Highest at JPY 2,331.02 MM

NET PROFIT(Q)

Highest at JPY 1,703.46 MM

EPS(Q)

Highest at JPY 138.88

-10What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 18%

INTEREST(Q)

Highest at JPY 80.75 MM

Here's what is working for Sanyo Homes Corp.

Net Sales

Highest at JPY 22,598.93 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 2,418 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 10.7 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 2,331.02 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 2,331.02 MM has Grown at 79.51%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,703.46 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 1,703.46 MM has Grown at 98.86%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 138.88

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -14.13% (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 Homes Corp.

Interest

Highest at JPY 80.75 MM

in the last five periods and Increased by 5.98% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Dividend Payout Ratio

Lowest at 18%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)