Sawafuji Electric Co., Ltd. (6901) 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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Why is Sawafuji Electric Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.88%

The company has been able to generate a Return on Capital Employed (avg) of 1.88% signifying low profitability per unit of total capital (equity and debt)

Weak Long Term Fundamental Strength with a -19.93% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 3.08% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -4.68% and Operating profit at -19.93% over the last 5 years

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

NET PROFIT(9M) At JPY -232 MM has Grown at -300.28%
CASH AND EQV(HY) Lowest at JPY 1,414 MM
DEBT-EQUITY RATIO (HY) Highest at 44.4 %

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 Auto Components & Equipments)

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

Is Sawafuji Electric Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sawafuji Electric Co., Ltd.

41.25%

0.12

38.41%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.68%

EBIT Growth (5y)

-19.93%

EBIT to Interest (avg)

12.80

Debt to EBITDA (avg)

2.34

Net Debt to Equity (avg)

0.32

Sales to Capital Employed (avg)

1.60

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

55.89%

Pledged Shares

Institutional Holding

ROCE (avg)

1.88%

ROE (avg)

3.08%

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

0.31

EV to EBIT

102.76

EV to EBITDA

8.63

EV to Capital Employed

0.48

EV to Sales

0.34

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

0.46%

ROE (Latest)

1.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Bearish

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

11What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 143 MM has Grown at 246.67%

NET PROFIT(Q)

At JPY 176 MM has Grown at 417.12%

RAW MATERIAL COST(Y)

Fallen by -26.65% (YoY

-16What is not working for the Company

NET PROFIT(9M)

At JPY -232 MM has Grown at -300.28%

CASH AND EQV(HY)

Lowest at JPY 1,414 MM

DEBT-EQUITY RATIO (HY)

Highest at 44.4 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.82 times

INTEREST(Q)

Highest at JPY 27 MM

Here's what is working for Sawafuji Electric Co., Ltd.

Pre-Tax Profit

At JPY 143 MM has Grown at 246.67%

over average net sales of the previous four periods of JPY -97.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 176 MM has Grown at 417.12%

over average net sales of the previous four periods of JPY -55.5 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -26.65% (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 222 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 Sawafuji Electric Co., Ltd.

Interest

Highest at JPY 27 MM

in the last five periods and Increased by 8% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 1,414 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 44.4 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 2.82 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio