Why is Seiryo Electric Corp. ?
1
Poor Management Efficiency with a low ROE of 3.30%
- The company has been able to generate a Return on Equity (avg) of 3.30% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 3.30%
- Poor long term growth as Net Sales has grown by an annual rate of 1.49% and Operating profit at 25.15% over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 3.30% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 1.49% and Operating profit at 25.15% over the last 5 years
4
The company has declared negative results in Mar'2026 after 3 consecutive positive quarters
- PRE-TAX PROFIT(Q) At JPY 195 MM has Fallen at -61.31%
- NET PROFIT(Q) At JPY 88.15 MM has Fallen at -80.8%
- INTEREST(Q) At JPY 2 MM has Grown at inf%
5
With ROE of 10.07%, it has a very attractive valuation with a 0.54 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 9.21%, its profits have risen by 506.9% ; the PEG ratio of the company is 0
How much should you hold?
- Overall Portfolio exposure to Seiryo Electric Corp. should be less than 10%
- Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Seiryo Electric Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Seiryo Electric Corp.
6.11%
0.25
30.70%
Japan Nikkei 225
59.79%
2.06
29.57%
Quality key factors
Factor
Value
Sales Growth (5y)
1.49%
EBIT Growth (5y)
25.15%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
3.33
Tax Ratio
46.14%
Dividend Payout Ratio
44.92%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.46%
ROE (avg)
3.30%
Valuation Key Factors 
Factor
Value
P/E Ratio
5
Industry P/E
Price to Book Value
0.54
EV to EBIT
3.52
EV to EBITDA
2.80
EV to Capital Employed
0.50
EV to Sales
0.12
PEG Ratio
0.01
Dividend Yield
NA
ROCE (Latest)
14.22%
ROE (Latest)
10.07%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
4What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 136%
NET PROFIT(9M)
Higher at JPY 340.15 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 11.67 times
NET SALES(Q)
Highest at JPY 7,561 MM
-14What is not working for the Company
PRE-TAX PROFIT(Q)
At JPY 195 MM has Fallen at -61.31%
NET PROFIT(Q)
At JPY 88.15 MM has Fallen at -80.8%
INTEREST(Q)
At JPY 2 MM has Grown at inf%
RAW MATERIAL COST(Y)
Grown by 7.4% (YoY
Here's what is working for Seiryo Electric Corp.
Net Sales
Highest at JPY 7,561 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Inventory Turnover Ratio
Highest at 11.67 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend Payout Ratio
Highest at 136%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for Seiryo Electric Corp.
Pre-Tax Profit
At JPY 195 MM has Fallen at -61.31%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 88.15 MM has Fallen at -80.8%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 2 MM has Grown at inf%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Raw Material Cost
Grown by 7.4% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






