Why is Seed Co., Ltd. /7743/ ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of 0.89% and Operating profit at 4.55% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Capital Employed (avg) of 4.68% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 0.89% and Operating profit at 4.55% over the last 5 years
3
The company has declared Negative results for the last 3 consecutive quarters
- PRE-TAX PROFIT(Q) At JPY 186.14 MM has Fallen at -56.71%
- INTEREST(HY) At JPY 189.66 MM has Grown at 7.81%
- INTEREST COVERAGE RATIO(Q) Lowest at 1,032.07
4
With ROCE of 4.90%, it has a very attractive valuation with a 0.86 Enterprise value to Capital Employed
- 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 17.46%, its profits have fallen by -43.9%
- At the current price, the company has a high dividend yield of 0.1
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 Pharmaceuticals & Biotechnology)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Seed Co., Ltd. /7743/ for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Seed Co., Ltd. /7743/
17.46%
0.22
31.66%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality key factors
Factor
Value
Sales Growth (5y)
0.89%
EBIT Growth (5y)
4.55%
EBIT to Interest (avg)
6.33
Debt to EBITDA (avg)
3.38
Net Debt to Equity (avg)
0.77
Sales to Capital Employed (avg)
0.91
Tax Ratio
17.04%
Dividend Payout Ratio
41.56%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.68%
ROE (avg)
8.65%
Valuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
0.74
EV to EBIT
17.45
EV to EBITDA
5.51
EV to Capital Employed
0.85
EV to Sales
0.82
PEG Ratio
NA
Dividend Yield
0.09%
ROCE (Latest)
4.90%
ROE (Latest)
6.14%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Movement
1What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -2.64% (YoY
-19What is not working for the Company
PRE-TAX PROFIT(Q)
At JPY 186.14 MM has Fallen at -56.71%
INTEREST(HY)
At JPY 189.66 MM has Grown at 7.81%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,032.07
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.35 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.13 times
OPERATING PROFIT(Q)
Lowest at JPY 987.22 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 11.78 %
NET PROFIT(Q)
Lowest at JPY 74.59 MM
EPS(Q)
Lowest at JPY 2.47
Here's what is working for Seed Co., Ltd. /7743/
Raw Material Cost
Fallen by -2.64% (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 Seed Co., Ltd. /7743/
Pre-Tax Profit
At JPY 186.14 MM has Fallen at -56.71%
over average net sales of the previous four periods of JPY 430.03 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 74.59 MM has Fallen at -77.72%
over average net sales of the previous four periods of JPY 334.74 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest Coverage Ratio
Lowest at 1,032.07
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
At JPY 189.66 MM has Grown at 7.81%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit
Lowest at JPY 987.22 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 11.78 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Net Profit
Lowest at JPY 74.59 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 2.47
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Inventory Turnover Ratio
Lowest at 2.35 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 6.13 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






