Why is Seiwa Electric Mfg. Co., Ltd ?
1
Flat results in Dec 25
- NET PROFIT(HY) At JPY 658.38 MM has Grown at -32.67%
- INTEREST(Q) At JPY 11.8 MM has Grown at 54.31%
- RAW MATERIAL COST(Y) Grown by 16.59% (YoY)
2
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 38.27%, 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
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, Low Return
Absolute
Risk Adjusted
Volatility
Seiwa Electric Mfg. Co., Ltd
38.27%
0.95
32.83%
Japan Nikkei 225
36.73%
1.30
28.24%
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)
1.19
Tax Ratio
30.99%
Dividend Payout Ratio
17.47%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.04%
ROE (avg)
7.19%
Valuation Key Factors 
Factor
Value
P/E Ratio
5
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%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Movement
3What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 64.66%
INVENTORY TURNOVER RATIO(HY)
Highest at 4.53 times
DIVIDEND PER SHARE(HY)
Highest at JPY 2.09
-7What is not working for the Company
NET PROFIT(HY)
At JPY 658.38 MM has Grown at -32.67%
INTEREST(Q)
At JPY 11.8 MM has Grown at 54.31%
RAW MATERIAL COST(Y)
Grown by 16.59% (YoY
Here's what is working for Seiwa Electric Mfg. Co., Ltd
Inventory Turnover Ratio
Highest at 4.53 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend per share
Highest at JPY 2.09
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Dividend Payout Ratio
Highest at 64.66%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for Seiwa Electric Mfg. Co., Ltd
Interest
At JPY 11.8 MM has Grown at 54.31%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Profit
At JPY 658.38 MM has Grown at -32.67%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Raw Material Cost
Grown by 16.59% (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






