Seigakusha Co., Ltd. (2179) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ichishin Holdings Co., Ltd.

Sun-Life Holding Co., Ltd.

Seigakusha Co., Ltd.

Econach Holdings Co., Ltd.

NOVARESE, Inc.

Global Kids Company Corp.

Keifuku Electric Railroad Co. Ltd.

Heian Ceremony Service Co., Ltd.

Bestone.com Co., Ltd.

RareJob Inc.

ESCRIT Inc.

Why is Seigakusha Co., Ltd. ?

High Management Efficiency with a high ROCE of 14.70%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 23.36

Flat results in Jun 25

INTEREST(9M) At JPY 18.29 MM has Grown at 6.9%
OPERATING PROFIT(Q) Lowest at JPY -451.4 MM
PRE-TAX PROFIT(Q) Lowest at JPY -551.01 MM

With ROCE of 19.61%, it has a very attractive valuation with a 1.15 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 2.31%, its profits have risen by 13.3% ; the PEG ratio of the company is 0.6

Underperformed the market in the last 1 year

The stock has generated a return of 2.31% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Seigakusha Co., Ltd. should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

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

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

Is Seigakusha Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Seigakusha Co., Ltd.

1.02%

0.06

16.48%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.17%

EBIT Growth (5y)

23.36%

EBIT to Interest (avg)

23.36

Debt to EBITDA (avg)

1.35

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

2.28

Tax Ratio

30.23%

Dividend Payout Ratio

22.84%

Pledged Shares

Institutional Holding

ROCE (avg)

14.70%

ROE (avg)

12.11%

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

1.15

EV to EBIT

5.86

EV to EBITDA

3.87

EV to Capital Employed

1.15

EV to Sales

0.32

PEG Ratio

0.60

Dividend Yield

ROCE (Latest)

19.61%

ROE (Latest)

14.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

6What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 19.95 %

RAW MATERIAL COST(Y)

Fallen by -151.15% (YoY

CASH AND EQV(HY)

Highest at JPY 3,562 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 243.27%

DEBTORS TURNOVER RATIO(HY)

Highest at 17.81%

-10What is not working for the Company

INTEREST(9M)

At JPY 18.29 MM has Grown at 6.9%

OPERATING PROFIT(Q)

Lowest at JPY -451.4 MM

PRE-TAX PROFIT(Q)

Lowest at JPY -551.01 MM

NET PROFIT(Q)

Lowest at JPY -377.82 MM

EPS(Q)

Lowest at JPY -69.88

Here's what is working for Seigakusha Co., Ltd.

Debt-Equity Ratio

Lowest at 19.95 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Cash and Eqv

Highest at JPY 3,562 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 243.27%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 17.81%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -151.15% (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 Seigakusha Co., Ltd.

Interest

At JPY 18.29 MM has Grown at 6.9%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY -451.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY -551.01 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -377.82 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -69.88

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)