Seiko Electric Co., Ltd. (6653) 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

Suzuki Co., Ltd.

Seiko Electric Co., Ltd.

Nippon Dry-Chemical Co., Ltd.

Odawara Engineering Co., Ltd.

Otec Corp.

Kitagawa Corp.

Koike Sanso Kogyo Co., Ltd.

Kimura Chemical Plants Co., Ltd.

Trinity Industrial Corp.

PEGASUS Co., Ltd.

Takisawa Machine Tool Co., Ltd.

Why is Seiko Electric Co., Ltd. ?

Weak Long Term Fundamental Strength with a 6.85% CAGR growth in Net Sales over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 6.85% over the last 5 years

Positive results in Mar 26

ROCE(HY) Highest at 13.25%
RAW MATERIAL COST(Y) Fallen by -1.64% (YoY)
CASH AND EQV(HY) Highest at JPY 7,338 MM

With ROE of 12.18%, it has a very attractive valuation with a 1.68 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 47.92%, its profits have risen by 34.5% ; the PEG ratio of the company is 0.4

Underperformed the market in the last 1 year

The stock has generated a return of 47.92% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 61.01%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Seiko Electric Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

No Data Found

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.85%

EBIT Growth (5y)

13.02%

EBIT to Interest (avg)

73.49

Debt to EBITDA (avg)

1.08

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

1.61

Tax Ratio

31.37%

Dividend Payout Ratio

33.19%

Pledged Shares

Institutional Holding

ROCE (avg)

11.82%

ROE (avg)

10.16%

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

1.68

EV to EBIT

11.39

EV to EBITDA

9.79

EV to Capital Employed

1.70

EV to Sales

0.98

PEG Ratio

0.40

Dividend Yield

ROCE (Latest)

14.95%

ROE (Latest)

12.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

Mildly Bearish

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

15What is working for the Company

ROCE(HY)

Highest at 13.85%

DIVIDEND PER SHARE(HY)

Highest at JPY 4.21

CASH AND EQV(HY)

Highest at JPY 12,455 MM

DEBT-EQUITY RATIO (HY)

Lowest at -37.66 %

INVENTORY TURNOVER RATIO(HY)

Highest at 9.48 times

DEBTORS TURNOVER RATIO(HY)

Highest at 4.21 times

NET SALES(Q)

At JPY 7,530 MM has Grown at 27.39%

NET PROFIT(Q)

At JPY 401 MM has Grown at 74.35%

-9What is not working for the Company

INTEREST(HY)

At JPY 17 MM has Grown at 21.43%

INTEREST COVERAGE RATIO(Q)

Lowest at 6,387.5

DIVIDEND PAYOUT RATIO(Y)

Lowest at 101.28%

Here's what is working for Seiko Electric Co., Ltd.

Dividend per share

Highest at JPY 4.21 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

At JPY 7,530 MM has Grown at 27.39%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

At JPY 401 MM has Grown at 74.35%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 12,455 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -37.66 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 9.48 times

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 4.21 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Seiko Electric Co., Ltd.

Interest

At JPY 17 MM has Grown at 21.43%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 6,387.5

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Dividend Payout Ratio

Lowest at 101.28%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)