Sata Construction Co., Ltd. (1826) 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

Besterra Co., Ltd

Meiho Facility Works Ltd.

Sata Construction Co., Ltd.

Semba Corp.

Wesco Holdings Inc. (Japan)

Tokura Corp.

Fuji P.S Corp.

Tenox Corp.

Watanabe Sato Co., Ltd.

Nichiryoku Co., Ltd.

Gantan Beauty Industry Co., Ltd.

Why is Sata Construction Co., Ltd. ?

Poor Management Efficiency with a low ROE of 4.08%

The company has been able to generate a Return on Equity (avg) of 4.08% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a -1.13% CAGR growth in Net Sales over the last 5 years

The company has been able to generate a Return on Equity (avg) of 4.08% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -1.13% over the last 5 years

Flat results in Jun 26

INTEREST(HY) At JPY 23 MM has Grown at 228.57%
NET SALES(Q) At JPY 8,320 MM has Fallen at -9.49%
CASH AND EQV(HY) Lowest at JPY 19,034 MM

With ROE of 7.08%, it has a very attractive valuation with a 1.22 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 -12.65%, its profits have risen by 50.7% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 58.07% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -12.65% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sata Construction Co., Ltd. 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 Sata Construction Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sata Construction Co., Ltd.

-12.65%

2.01

23.35%

Japan Nikkei 225

58.07%

1.98

29.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.13%

EBIT Growth (5y)

-6.44%

EBIT to Interest (avg)

72.94

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.83

Sales to Capital Employed (avg)

2.01

Tax Ratio

36.14%

Dividend Payout Ratio

83.86%

Pledged Shares

Institutional Holding

ROCE (avg)

26.54%

ROE (avg)

4.08%

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

1.22

EV to EBIT

8.33

EV to EBITDA

7.19

EV to Capital Employed

1.32

EV to Sales

0.31

PEG Ratio

0.23

Dividend Yield

ROCE (Latest)

15.84%

ROE (Latest)

7.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

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

16What is working for the Company

NET PROFIT(HY)

At JPY 713.02 MM has Grown at 208.54%

NET SALES(HY)

At JPY 20,373 MM has Grown at 28.6%

ROCE(HY)

Highest at 8.98%

INTEREST COVERAGE RATIO(Q)

Highest at 9,240

RAW MATERIAL COST(Y)

Fallen by -29.59% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 6.61 times

-11What is not working for the Company

INTEREST(HY)

At JPY 23 MM has Grown at 228.57%

NET SALES(Q)

At JPY 8,320 MM has Fallen at -9.49%

CASH AND EQV(HY)

Lowest at JPY 19,034 MM

Here's what is working for Sata Construction Co., Ltd.

Net Profit

At JPY 713.02 MM has Grown at 208.54%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Interest Coverage Ratio

Highest at 9,240

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debtors Turnover Ratio

Highest at 6.61 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 -29.59% (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 Sata Construction Co., Ltd.

Interest

At JPY 23 MM has Grown at 228.57%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 8,320 MM has Fallen at -9.49%

over average net sales of the previous four periods of JPY 9,192.25 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Cash and Eqv

Lowest at JPY 19,034 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents