Sato Holdings Corp. (6287) 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

Wacom Co., Ltd.

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Sato Holdings Corp.

EIZO Corp.

Canon, Inc.

Riso Kagaku Corp.

Seiko Epson Corp.

Why is Sato Holdings Corp. ?

Weak Long Term Fundamental Strength with a 8.26% CAGR growth in Net Sales over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 8.26% over the last 5 years

Negative results in Mar 26

OPERATING PROFIT MARGIN(Q) Lowest at 9.49 %
PRE-TAX PROFIT(Q) Lowest at JPY 1,791 MM
NET PROFIT(Q) Lowest at JPY -88.34 MM

With ROE of 7.82%, it has a very attractive valuation with a 0.91 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 17.31%, its profits have fallen by -11.3%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 17.31% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 61.01%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sato Holdings Corp. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

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

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

Is Sato Holdings Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sato Holdings Corp.

17.49%

0.84

23.51%

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)

8.26%

EBIT Growth (5y)

14.43%

EBIT to Interest (avg)

25.45

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

1.69

Tax Ratio

37.24%

Dividend Payout Ratio

48.51%

Pledged Shares

Institutional Holding

1.64%

ROCE (avg)

16.53%

ROE (avg)

12.03%

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

0.91

EV to EBIT

5.53

EV to EBITDA

3.63

EV to Capital Employed

0.89

EV to Sales

0.38

PEG Ratio

Dividend Yield

ROCE (Latest)

16.05%

ROE (Latest)

7.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 13,273 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.35 times

RAW MATERIAL COST(Y)

Fallen by 0.1% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -12.95 %

-13What is not working for the Company

OPERATING PROFIT MARGIN(Q)

Lowest at 9.49 %

PRE-TAX PROFIT(Q)

Lowest at JPY 1,791 MM

NET PROFIT(Q)

Lowest at JPY -88.34 MM

EPS(Q)

Lowest at JPY -0.59

Here's what is working for Sato Holdings Corp.

Inventory Turnover Ratio

Highest at 3.35 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Cash Flow

Highest at JPY 13,273 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Debt-Equity Ratio

Lowest at -12.95 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by 0.1% (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 1,585 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 Holdings Corp.

Net Profit

At JPY -88.34 MM has Fallen at -105.49%

over average net sales of the previous four periods of JPY 1,609.39 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit Margin

Lowest at 9.49 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 1,791 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 1,791 MM has Fallen at -29.18%

over average net sales of the previous four periods of JPY 2,529 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -88.34 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -0.59

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)