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.

NISSHIN GROUP HOLDINGS Co., Ltd.

AVANTIA Co., Ltd.

The Global Ltd.

Japan Living Warranty, Inc.

Grandy House Corp.

NIHON HOUSE HOLDINGS Co., Ltd.

REVOLUTION CO., LTD. (Yamaguchi)

First-corporation Inc.

First Juken Co., Ltd.

Sanyo Homes Corp.

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)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -4.18% and Operating profit at 11.47% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
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 -4.18% and Operating profit at 11.47% over the last 5 years

With a fall in Net Sales of -13%, the company declared Very Negative results in Dec 25

PRE-TAX PROFIT(Q) At JPY -186.88 MM has Fallen at -130.06%
NET PROFIT(Q) At JPY -142.28 MM has Fallen at -134.19%
NET SALES(Q) At JPY 8,822.83 MM has Fallen at -13%

With ROCE of 4.10%, it has a very attractive valuation with a 0.71 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 -3.81%, its profits have risen by 11.1% ; the PEG ratio of the company is 1.1

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 Furniture, Home Furnishing)

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

Is Sanyo Homes Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sanyo Homes Corp.

-100.0%

-0.23

16.89%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.18%

EBIT Growth (5y)

11.47%

EBIT to Interest (avg)

3.67

Debt to EBITDA (avg)

147.75

Net Debt to Equity (avg)

1.20

Sales to Capital Employed (avg)

1.24

Tax Ratio

37.93%

Dividend Payout Ratio

41.52%

Pledged Shares

Institutional Holding

ROCE (avg)

2.69%

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

0.56

EV to EBIT

17.33

EV to EBITDA

14.80

EV to Capital Employed

0.71

EV to Sales

0.36

PEG Ratio

1.06

Dividend Yield

ROCE (Latest)

4.10%

ROE (Latest)

4.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-30What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY -186.88 MM has Fallen at -130.06%

NET PROFIT(Q)

At JPY -142.28 MM has Fallen at -134.19%

NET SALES(Q)

At JPY 8,822.83 MM has Fallen at -13%

RAW MATERIAL COST(Y)

Grown by 6.54% (YoY

INTEREST(Q)

Highest at JPY 76.19 MM

OPERATING PROFIT(Q)

Lowest at JPY -109.38 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.24 %

Here's what is not working for Sanyo Homes Corp.

Pre-Tax Profit

At JPY -186.88 MM has Fallen at -130.06%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -142.28 MM has Fallen at -134.19%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

At JPY 8,822.83 MM has Fallen at -13%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest

At JPY 76.19 MM has Grown at 18.24%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 76.19 MM

in the last five periods and Increased by 18.24% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY -109.38 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -1.24 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 6.54% (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