Seiwa Electric Mfg. Co., Ltd (6748) 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

Kitagawa Seiki Co., Ltd.

Tomita Co., Ltd.

Hamai Industries Ltd.

Seiwa Electric Mfg. Co., Ltd

Nikkato Corp.

Ichikawa Co., Ltd.

Shinpo Co. Ltd.

NC Holdings Co. Ltd.

Sukegawa Electric Co., Ltd.

Fuji Seiko Ltd.

Waida Mfg. Co., Ltd.

Why is Seiwa Electric Mfg. Co., Ltd ?

Flat results in Jun 25

INTEREST(HY) At JPY 38.46 MM has Grown at 101.11%
NET SALES(Q) At JPY 5,739.76 MM has Fallen at -11.82%
PRE-TAX PROFIT(Q) At JPY 164.22 MM has Fallen at -70.29%

With ROE of 8.83%, it has a very attractive valuation with a 0.44 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 48.05%, its profits have risen by 72.9% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.2

Market Beating Performance

The stock has generated a return of 48.05% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Seiwa Electric Mfg. 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

Is Seiwa Electric Mfg. Co., Ltd for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Seiwa Electric Mfg. Co., Ltd

44.46%

1.63

25.77%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.22%

EBIT Growth (5y)

29.04%

EBIT to Interest (avg)

23.59

Debt to EBITDA (avg)

1.99

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

1.18

Tax Ratio

30.99%

Dividend Payout Ratio

17.47%

Pledged Shares

Institutional Holding

ROCE (avg)

8.04%

ROE (avg)

7.19%

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

0.44

EV to EBIT

5.84

EV to EBITDA

4.57

EV to Capital Employed

0.55

EV to Sales

0.45

PEG Ratio

0.07

Dividend Yield

0.17%

ROCE (Latest)

9.40%

ROE (Latest)

8.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

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

7What is working for the Company

NET PROFIT(9M)

At JPY 1,265.83 MM has Grown at 65.52%

ROCE(HY)

Highest at 9.12%

RAW MATERIAL COST(Y)

Fallen by -6.13% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -9.5 %

-19What is not working for the Company

INTEREST(HY)

At JPY 38.46 MM has Grown at 101.11%

NET SALES(Q)

At JPY 5,739.76 MM has Fallen at -11.82%

PRE-TAX PROFIT(Q)

At JPY 164.22 MM has Fallen at -70.29%

NET PROFIT(Q)

At JPY 97.84 MM has Fallen at -74.34%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,272.91

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

Debt-Equity Ratio

Lowest at -9.5 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -6.13% (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 Seiwa Electric Mfg. Co., Ltd

Interest

At JPY 38.46 MM has Grown at 101.11%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 5,739.76 MM has Fallen at -11.82%

over average net sales of the previous four periods of JPY 6,509.48 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 164.22 MM has Fallen at -70.29%

over average net sales of the previous four periods of JPY 552.77 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 97.84 MM has Fallen at -74.34%

over average net sales of the previous four periods of JPY 381.33 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 1,272.91

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest