Satoh & Co., Ltd. (9996) 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

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Kourakuen Holdings Corp.

WDI Corp.

Yakiniku Sakai Holdings, Inc.

Satoh & Co., Ltd.

Hiramatsu, Inc.

Why is Satoh & Co., Ltd. ?

Poor Management Efficiency with a low ROE of 3.86%

The company has been able to generate a Return on Equity (avg) of 3.86% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 12.68% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 3.86% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.41% and Operating profit at 12.68% over the last 5 years

The company has declared negative results for the last 5 consecutive quarters

ROCE(HY) Lowest at 4.68%
INTEREST COVERAGE RATIO(Q) Lowest at 23,984.59
CASH AND EQV(HY) Lowest at JPY 20,826.35 MM

Underperformed the market in the last 1 year

The stock has generated a return of 6.29% 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 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 Leisure Services)

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

Is Satoh & Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Satoh & Co., Ltd.

7.89%

0.96

22.13%

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)

2.41%

EBIT Growth (5y)

12.68%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

1.83

Tax Ratio

29.27%

Dividend Payout Ratio

30.63%

Pledged Shares

Institutional Holding

ROCE (avg)

9.11%

ROE (avg)

3.86%

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

0.67

EV to EBIT

4.36

EV to EBITDA

3.48

EV to Capital Employed

0.44

EV to Sales

0.14

PEG Ratio

Dividend Yield

ROCE (Latest)

10.10%

ROE (Latest)

4.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly 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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-21What is not working for the Company

ROCE(HY)

Lowest at 4.68%

INTEREST COVERAGE RATIO(Q)

Lowest at 23,984.59

CASH AND EQV(HY)

Lowest at JPY 20,826.35 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 13.2 times

INTEREST(Q)

Highest at JPY 1.28 MM

OPERATING PROFIT(Q)

Lowest at JPY 308.2 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.55 %

PRE-TAX PROFIT(Q)

Lowest at JPY 259.66 MM

EPS(Q)

Lowest at JPY 19.11

Here's what is not working for Satoh & Co., Ltd.

Interest

At JPY 1.28 MM has Grown at 21.57%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 23,984.59

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 1.28 MM

in the last five periods and Increased by 21.57% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 308.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 2.55 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 259.66 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

EPS

Lowest at JPY 19.11

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 20,826.35 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 13.2 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at JPY 0.42 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income