Seiwa Chuo Holdings Corp. (7531) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Canox Corp.

Kurimoto Ltd.

Nippon Kinzoku Co., Ltd.

Tohoku Steel Co., Ltd.

Seiwa Chuo Holdings Corp.

Nippon Koshuha Steel Co., Ltd.

Tokyo Tekko Co., Ltd.

Pacific Metals Co., Ltd.

Mory Industries Inc.

Nichia Steel Works, Ltd.

Hokuetsu Metal Co., Ltd.

Why is Seiwa Chuo Holdings Corp. ?

Poor Management Efficiency with a low ROCE of 2.98%

The company has been able to generate a Return on Capital Employed (avg) of 2.98% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Operating profit has grown by an annual rate -166.00% of over the last 5 years

Flat results in Jun 25

NET PROFIT(9M) At JPY 29.25 MM has Grown at -77.35%
NET SALES(9M) At JPY 38,386.5 MM has Grown at -9.08%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 13.62%, its profits have fallen by -368.1%

Underperformed the market in the last 1 year

The stock has generated a return of 13.62% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Seiwa Chuo Holdings Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Seiwa Chuo Holdings Corp.

13.62%

-0.05

31.10%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.92%

EBIT Growth (5y)

-166.00%

EBIT to Interest (avg)

86.81

Debt to EBITDA (avg)

1.89

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

3.28

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.98%

ROE (avg)

2.55%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.42

EV to EBIT

-92.57

EV to EBITDA

13.68

EV to Capital Employed

0.38

EV to Sales

0.11

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.41%

ROE (Latest)

-0.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

24What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -9.73 %

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -4.66% (YoY

CASH AND EQV(HY)

Highest at JPY 3,417.98 MM

NET SALES(Q)

Highest at JPY 13,319.3 MM

OPERATING PROFIT(Q)

Highest at JPY 203.2 MM

OPERATING PROFIT MARGIN(Q)

Highest at 1.53 %

PRE-TAX PROFIT(Q)

Highest at JPY 114.61 MM

NET PROFIT(Q)

Highest at JPY 78.39 MM

EPS(Q)

Highest at JPY 19.92

-6What is not working for the Company

NET PROFIT(9M)

At JPY 29.25 MM has Grown at -77.35%

NET SALES(9M)

At JPY 38,386.5 MM has Grown at -9.08%

Here's what is working for Seiwa Chuo Holdings Corp.

Pre-Tax Profit

At JPY 114.61 MM has Grown at 763.34%

over average net sales of the previous four periods of JPY 13.28 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 78.39 MM has Grown at 490.48%

over average net sales of the previous four periods of JPY -20.08 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at -9.73 % 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

Net Sales

Highest at JPY 13,319.3 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 203.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 1.53 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 114.61 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 78.39 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 19.92

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 3,417.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -4.66% (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