Seikitokyu Kogyo Co., Ltd. (1898) 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

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Oyo Corp.

Seikitokyu Kogyo Co., Ltd.

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Sumitomo Mitsui Construction Co., Ltd.

Nichireki Co., Ltd.

Yurtec Corp.

Why is Seikitokyu Kogyo Co., Ltd. ?

Weak Long Term Fundamental Strength with a -3.38% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 1.89% and Operating profit at -3.38% over the last 5 years

Flat results in Mar 26

DIVIDEND PAYOUT RATIO(Y) Lowest at 78.54%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.5 times

With ROE of 10.50%, it has a very attractive valuation with a 1.28 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 -3.98%, its profits have risen by 20.7% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.98% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Seikitokyu Kogyo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Seikitokyu Kogyo Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Seikitokyu Kogyo Co., Ltd.

-5.3%

-0.87

16.77%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.89%

EBIT Growth (5y)

-3.38%

EBIT to Interest (avg)

69.39

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

1.98

Tax Ratio

26.99%

Dividend Payout Ratio

55.73%

Pledged Shares

Institutional Holding

ROCE (avg)

12.76%

ROE (avg)

8.65%

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

1.28

EV to EBIT

7.38

EV to EBITDA

5.63

EV to Capital Employed

1.34

EV to Sales

0.48

PEG Ratio

0.59

Dividend Yield

ROCE (Latest)

18.12%

ROE (Latest)

10.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -12.82% (YoY

NET PROFIT(Q)

Highest at JPY 1,694.5 MM

EPS(Q)

Highest at JPY 45.83

-2What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 78.54%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.5 times

Here's what is working for Seikitokyu Kogyo Co., Ltd.

Net Profit

Highest at JPY 1,694.5 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 45.83

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -12.82% (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 Seikitokyu Kogyo Co., Ltd.

Debtors Turnover Ratio

Lowest at 2.5 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 78.54%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)