SDS HOLDINGS Co., Ltd. (1711) 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

NKK Switches Co. Ltd.

JMACS Japan Co. Ltd.

Nippon Gear Co., Ltd.

NIKKO Co.

Kawaden Corp.

SDS HOLDINGS Co., Ltd.

Nippon Tungsten Co., Ltd.

Otani Kogyo Co., Ltd.

Fuji Electric Industry Co., Ltd.

Fuji Latex Co., Ltd.

Oriental Chain Mfg. Co., Ltd.

Why is SDS HOLDINGS Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0.22%

The company is Net-Debt Free

With a growth in Operating Profit of 59.21%, the company declared Outstanding results in Dec 25

RAW MATERIAL COST(Y) Fallen by -17.1% (YoY)
INVENTORY TURNOVER RATIO(HY) Highest at 2.2 times
NET SALES(Q) Highest at JPY 1,501.02 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -13.01%, its profits have risen by 50.8%

Below par performance in long term as well as near term

Along with generating -13.01% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SDS HOLDINGS Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is SDS HOLDINGS Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

SDS HOLDINGS Co., Ltd.

-100.0%

-0.83

59.80%

Japan Nikkei 225

75.22%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

30.18%

EBIT Growth (5y)

19.89%

EBIT to Interest (avg)

-67.82

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

4.96

Sales to Capital Employed (avg)

1.13

Tax Ratio

28.41%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.22%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

5.16

EV to EBIT

66.09

EV to EBITDA

36.36

EV to Capital Employed

1.59

EV to Sales

1.41

PEG Ratio

Dividend Yield

ROCE (Latest)

2.41%

ROE (Latest)

-12.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

19What is working for the Company

NET SALES(HY)

At JPY 2,866.12 MM has Grown at 44.41%

NET PROFIT(HY)

Higher at JPY -23.85 MM

ROCE(HY)

Highest at -14.98%

INVENTORY TURNOVER RATIO(HY)

Highest at 2.19 times

-16What is not working for the Company

INTEREST(HY)

At JPY 53.66 MM has Grown at 14.3%

DEBT-EQUITY RATIO (HY)

Highest at 698.39 %

OPERATING PROFIT(Q)

Lowest at JPY -4.99 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.37 %

PRE-TAX PROFIT(Q)

Lowest at JPY -56.01 MM

NET PROFIT(Q)

At JPY -34.15 MM has Fallen at -29.59%

Here's what is working for SDS HOLDINGS Co., Ltd.

Net Sales

At JPY 2,866.12 MM has Grown at 44.41%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 2.19 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at JPY 26.27 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 SDS HOLDINGS Co., Ltd.

Pre-Tax Profit

At JPY -56.01 MM has Fallen at -2,320.92%

over average net sales of the previous four periods of JPY -2.31 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest

At JPY 53.66 MM has Grown at 14.3%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 698.39 % and Grown

In each half year 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

Operating Profit

Lowest at JPY -4.99 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -0.37 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -56.01 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -34.15 MM has Fallen at -29.59%

over average net sales of the previous four periods of JPY -26.35 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)