SANYO SHOKAI LTD. (8011) 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

Shoei Co. Ltd. (7839)

Mizuno Corp.

Morito Co., Ltd.

Onward Holdings Co., Ltd.

SANYO SHOKAI LTD.

World Co., Ltd.

TSI Holdings Co., Ltd.

HONEYS Holdings Co., Ltd.

Gunze Ltd.

Jichodo Co., Ltd.

Wacoal Holdings Corp.

Why is SANYO SHOKAI LTD. ?

Poor Management Efficiency with a low ROE of 5.56%

The company has been able to generate a Return on Equity (avg) of 5.56% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -2.47

Poor long term growth as Net Sales has grown by an annual rate of 9.03% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -2.47
The company has been able to generate a Return on Equity (avg) of 5.56% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.03% over the last 5 years

INTEREST(HY) At JPY 72 MM has Grown at 14.29%
PRE-TAX PROFIT(Q) At JPY 103 MM has Fallen at -92.58%
NET PROFIT(Q) At JPY 109 MM has Fallen at -90.4%

With ROE of 11.11%, it has a very attractive valuation with a 0.95 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 61.14%, its profits have risen by 7.7% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SANYO SHOKAI LTD. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is SANYO SHOKAI LTD. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

SANYO SHOKAI LTD.

58.76%

2.83

36.14%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.03%

EBIT Growth (5y)

16.50%

EBIT to Interest (avg)

16.38

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.37

Sales to Capital Employed (avg)

1.28

Tax Ratio

18.13%

Dividend Payout Ratio

35.45%

Pledged Shares

Institutional Holding

ROCE (avg)

7.35%

ROE (avg)

5.56%

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

0.95

EV to EBIT

17.42

EV to EBITDA

9.29

EV to Capital Employed

0.92

EV to Sales

0.39

PEG Ratio

0.27

Dividend Yield

0.03%

ROCE (Latest)

5.29%

ROE (Latest)

11.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

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

7What is working for the Company

NET PROFIT(HY)

Higher at JPY 4,258.84 MM

ROCE(HY)

Highest at 10.85%

DEBT-EQUITY RATIO (HY)

Lowest at -39.12 %

DEBTORS TURNOVER RATIO(HY)

Highest at 16.75 times

-12What is not working for the Company

INTEREST(HY)

At JPY 72 MM has Grown at 14.29%

PRE-TAX PROFIT(Q)

At JPY 103 MM has Fallen at -92.58%

NET PROFIT(Q)

At JPY 109 MM has Fallen at -90.4%

Here's what is working for SANYO SHOKAI LTD.

Debt-Equity Ratio

Lowest at -39.12 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 16.75 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for SANYO SHOKAI LTD.

Pre-Tax Profit

At JPY 103 MM has Fallen at -92.58%

over average net sales of the previous four periods of JPY 1,388.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 109 MM has Fallen at -90.4%

over average net sales of the previous four periods of JPY 1,135.96 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 72 MM has Grown at 14.29%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)