Sato Foods Co., Ltd. (Niigata) (2923) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kadoya Sesame Mills Inc.

WELLNEO SUGAR Co. Ltd.

Fuji Nihon Seito Corp.

Mitsui DM Sugar Holdings Co., Ltd.

Hokuto Corp.

Chubushiryo Co., Ltd.

Feed One Co., Ltd.

J-Oil Mills, Inc.

Sato Foods Co., Ltd. (Niigata)

Nippon Beet Sugar Manufacturing Co., Ltd.

Yukiguni Maitake Co., Ltd.

Why is Sato Foods Co., Ltd. (Niigata) ?

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 1.30% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Healthy long term growth as Operating profit has grown by an annual rate 22.43%

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(9M) At JPY 75.41 MM has Grown at 44.48%
ROCE(HY) Lowest at 9.05%

With ROCE of 5.35%, it has a expensive valuation with a 1.48 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 2.40%, its profits have fallen by -28.7%

Underperformed the market in the last 1 year

The stock has generated a return of 2.40% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sato Foods Co., Ltd. (Niigata) should be less than 10%
Overall Portfolio exposure to Other Agricultural Products should be less than 30%

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

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

Is Sato Foods Co., Ltd. (Niigata) for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sato Foods Co., Ltd. (Niigata)

2.4%

0.11

34.79%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.30%

EBIT Growth (5y)

22.43%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

2.47

Net Debt to Equity (avg)

0.62

Sales to Capital Employed (avg)

1.15

Tax Ratio

32.78%

Dividend Payout Ratio

18.11%

Pledged Shares

Institutional Holding

ROCE (avg)

8.19%

ROE (avg)

10.34%

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

1.78

EV to EBIT

27.68

EV to EBITDA

10.94

EV to Capital Employed

1.48

EV to Sales

1.18

PEG Ratio

Dividend Yield

ROCE (Latest)

5.35%

ROE (Latest)

7.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

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

9What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 4.97

PRE-TAX PROFIT(Q)

At JPY 140.49 MM has Grown at 127.37%

NET PROFIT(Q)

At JPY 72.65 MM has Grown at 148.89%

DIVIDEND PAYOUT RATIO(Y)

Highest at 744.01%

RAW MATERIAL COST(Y)

Fallen by -13.18% (YoY

CASH AND EQV(HY)

Highest at JPY 6,782.91 MM

-10What is not working for the Company

INTEREST(9M)

At JPY 75.41 MM has Grown at 44.48%

ROCE(HY)

Lowest at 9.05%

Here's what is working for Sato Foods Co., Ltd. (Niigata)

Pre-Tax Profit

At JPY 140.49 MM has Grown at 127.37%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 72.65 MM has Grown at 148.89%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Dividend per share

Highest at JPY 4.97 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Cash and Eqv

Highest at JPY 6,782.91 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 744.01%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -13.18% (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

Depreciation

Highest at JPY 799.98 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Sato Foods Co., Ltd. (Niigata)

Interest

At JPY 54.16 MM has Grown at 64.93%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)