Seed Co., Ltd. /7743/

  • Market Cap: Small Cap
  • Industry: Pharmaceuticals & Biotechnology
  • ISIN: JP3347000006
JPY
619.00
-2 (-0.32%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Mizuho Medy Co., Ltd.
Jins Holdings, Inc.
Shofu, Inc.
Rion Co., Ltd.
FRANCE BED HOLDINGS CO., LTD.
Medikit Co., Ltd.
Japan Lifeline Co., Ltd.
Eiken Chemical Co., Ltd.
CYBERDYNE, Inc.
Seed Co., Ltd. /7743/
Hogy Medical Co., Ltd.

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
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

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%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

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%
stock-recommendationTechnicals

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
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

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 MM
MOJO 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 MM
MOJO 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 periods
MOJO 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 period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit
Lowest at JPY 987.22 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin
Lowest at 11.78 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit
Lowest at JPY 74.59 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS
Lowest at JPY 2.47
in the last five periods
MOJO 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 periods
MOJO 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 periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio