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

Hurxley Corp.

Kushikatsu Tanaka Holdings Co.

UKAI Co., Ltd.

Towa Food Service Co., Ltd.

Choushimaru Co., Ltd.

Kourakuen Holdings Corp.

Satoh & Co., Ltd.

WDI Corp.

ANRAKUTEI Co., Ltd.

Hiramatsu, Inc.

Yakiniku Sakai Holdings, 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

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of -0.17% and Operating profit at 3.02% over the last 5 years

Flat results in Dec 25

INTEREST(HY) At JPY 2.11 MM has Grown at 42.77%
CASH AND EQV(HY) Lowest at JPY 21,122.12 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 11.25 times

With ROE of 4.94%, it has a very attractive valuation with a 0.66 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 5.60%, its profits have risen by 5.8% ; the PEG ratio of the company is 2.3

Underperformed the market in the last 1 year

The stock has generated a return of 5.60% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 41.20%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Satoh & Co., Ltd. should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

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

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

Is Satoh & Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Satoh & Co., Ltd.

5.6%

1.16

25.14%

Japan Nikkei 225

41.2%

1.45

28.34%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.17%

EBIT Growth (5y)

3.02%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

1.82

Tax Ratio

32.26%

Dividend Payout Ratio

28.54%

Pledged Shares

Institutional Holding

ROCE (avg)

8.73%

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

0.66

EV to EBIT

5.54

EV to EBITDA

4.42

EV to Capital Employed

0.51

EV to Sales

0.19

PEG Ratio

2.29

Dividend Yield

ROCE (Latest)

9.15%

ROE (Latest)

4.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.78% (YoY

NET SALES(Q)

Highest at JPY 13,905.09 MM

-10What is not working for the Company

INTEREST(HY)

At JPY 2.11 MM has Grown at 42.77%

CASH AND EQV(HY)

Lowest at JPY 21,122.12 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 11.25 times

Here's what is working for Satoh & Co., Ltd.

Net Sales

Highest at JPY 13,905.09 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Raw Material Cost

Fallen by -0.78% (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 Satoh & Co., Ltd.

Interest

At JPY 2.11 MM has Grown at 42.77%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 21,122.12 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 11.25 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio