Seiko Group Corp. (8050) 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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Yondoshi Holdings, Inc.

Nagahori Corp.

Seiko Group Corp.

Mitsubishi Pencil Co., Ltd.

The Sailor Pen Co., Ltd.

Festaria Holdings Co., Ltd.

Why is Seiko Group Corp. ?

Poor Management Efficiency with a low ROCE of 5.18%

The company has been able to generate a Return on Capital Employed (avg) of 5.18% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 10.24% and Operating profit at 90.10% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 6.97% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 10.24% and Operating profit at 90.10% over the last 5 years

Flat results in Mar 26

PRE-TAX PROFIT(Q) At JPY 2,179 MM has Fallen at -73.62%
NET PROFIT(Q) At JPY 1,936.78 MM has Fallen at -66.47%

With ROCE of 13.06%, it has a fair valuation with a 2.89 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 323.56%, its profits have risen by 57.3% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Seiko Group Corp. should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

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

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

Is Seiko Group Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Seiko Group Corp.

323.56%

1.21

77.65%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.24%

EBIT Growth (5y)

90.10%

EBIT to Interest (avg)

13.27

Debt to EBITDA (avg)

2.88

Net Debt to Equity (avg)

0.45

Sales to Capital Employed (avg)

1.11

Tax Ratio

30.59%

Dividend Payout Ratio

30.68%

Pledged Shares

Institutional Holding

ROCE (avg)

7.65%

ROE (avg)

6.97%

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

3.45

EV to EBIT

22.15

EV to EBITDA

14.66

EV to Capital Employed

2.89

EV to Sales

2.00

PEG Ratio

0.45

Dividend Yield

ROCE (Latest)

13.06%

ROE (Latest)

13.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

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

11What is working for the Company

ROCE(HY)

Highest at 13.25%

DEBT-EQUITY RATIO (HY)

Lowest at 35.96 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.16 times

DIVIDEND PER SHARE(HY)

Highest at JPY 7.31

RAW MATERIAL COST(Y)

Fallen by -4.42% (YoY

CASH AND EQV(HY)

Highest at JPY 98,575 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 7.31 times

-6What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 2,179 MM has Fallen at -73.62%

NET PROFIT(Q)

At JPY 1,936.78 MM has Fallen at -66.47%

Here's what is working for Seiko Group Corp.

Debt-Equity Ratio

Lowest at 35.96 % 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

Inventory Turnover Ratio

Highest at 2.16 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 7.31 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Cash and Eqv

Highest at JPY 98,575 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 7.31 times

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 -4.42% (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 Seiko Group Corp.

Pre-Tax Profit

At JPY 2,179 MM has Fallen at -73.62%

over average net sales of the previous four periods of JPY 8,260 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,936.78 MM has Fallen at -66.47%

over average net sales of the previous four periods of JPY 5,775.96 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)