Seika Corp. (8061) 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

Suzuden Corp.

Takebishi Corp.

Kanaden Corp.

Meiwa Corp.

Yashima Denki Co., Ltd.

Sumiseki Holdings, Inc.

Seika Corp.

JK Holdings Co., Ltd.

Beauty Garage, Inc.

Soft99 Corp.

Maruzen CHI Holdings Co., Ltd.

Why is Seika Corp. ?

Strong Long Term Fundamental Strength with a 25.48% CAGR growth in Operating Profits

Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 17.85% signifying high profitability per unit of total capital (equity and debt)

Flat results in Jun 26

INTEREST(HY) At JPY 130 MM has Grown at 6,400%
INTEREST COVERAGE RATIO(Q) Lowest at 4,598.46

With ROE of 14.03%, it has a very attractive valuation with a 1.98 Price to Book Value

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 -46.15%, its profits have fallen by -3.2%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 43.52% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -46.15% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Seika Corp. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Seika Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Seika Corp.

-46.15%

-0.32

84.00%

Japan Nikkei 225

43.52%

1.48

29.43%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.56%

EBIT Growth (5y)

25.48%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

1.92

Tax Ratio

30.97%

Dividend Payout Ratio

39.18%

Pledged Shares

Institutional Holding

ROCE (avg)

18.17%

ROE (avg)

11.85%

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

1.98

EV to EBIT

13.81

EV to EBITDA

12.49

EV to Capital Employed

1.92

EV to Sales

1.02

PEG Ratio

Dividend Yield

ROCE (Latest)

13.89%

ROE (Latest)

14.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

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

9What is working for the Company

NET SALES(HY)

At JPY 62,494 MM has Grown at 21.19%

OPERATING PROFIT MARGIN(Q)

Highest at 10.78 %

RAW MATERIAL COST(Y)

Fallen by -26.66% (YoY

CASH AND EQV(HY)

Highest at JPY 34,523 MM

PRE-TAX PROFIT(Q)

Highest at JPY 4,063 MM

NET PROFIT(Q)

Highest at JPY 2,758 MM

-10What is not working for the Company

INTEREST(HY)

At JPY 130 MM has Grown at 6,400%

INTEREST COVERAGE RATIO(Q)

Lowest at 4,598.46

Here's what is working for Seika Corp.

Operating Profit Margin

Highest at 10.78 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Sales

At JPY 62,494 MM has Grown at 21.19%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 4,063 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 2,758 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 34,523 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -26.66% (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 444 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 444 MM has Grown at 66.92%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Seika Corp.

Interest

At JPY 130 MM has Grown at 6,400%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 4,598.46

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

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