Seki Co., Ltd. (7857) 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

Alphapolis Co., Ltd.

Townnews-Sha Co., Ltd.

SE Holdings & Incubations Co., Ltd.

Starts Publishing Corp.

Seki Co., Ltd.

Bunkeido Co., Ltd.

Impress Holdings, Inc.

Shobunsha Holdings, Inc.

Success Holders, Inc.

Printnet, Inc.

Kadokawa Corp.

Why is Seki Co., Ltd. ?

Poor Management Efficiency with a low ROE of 2.42%

The company has been able to generate a Return on Equity (avg) of 2.42% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 64.31

Poor long term growth as Net Sales has grown by an annual rate of 0.77% over the last 5 years

With a growth in Net Profit of 121.36%, the company declared Very Positive results in Mar 26

INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
NET SALES(Q) Highest at JPY 3,408.73 MM
OPERATING PROFIT(Q) Highest at JPY 296.58 MM

With ROE of 0.90%, it has a fair valuation with a 0.38 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 -3.64%, its profits have fallen by -62.2%

Below par performance in long term as well as near term

Along with generating -3.64% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Seki Co., Ltd. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

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

Is Seki Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Seki Co., Ltd.

-4.63%

-0.24

13.31%

Japan Nikkei 225

81.16%

3.06

27.22%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.77%

EBIT Growth (5y)

-194.06%

EBIT to Interest (avg)

64.31

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.26

Sales to Capital Employed (avg)

0.78

Tax Ratio

36.48%

Dividend Payout Ratio

37.14%

Pledged Shares

Institutional Holding

ROCE (avg)

2.44%

ROE (avg)

2.42%

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

0.38

EV to EBIT

-101.12

EV to EBITDA

6.84

EV to Capital Employed

0.23

EV to Sales

0.25

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.23%

ROE (Latest)

0.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

No Trend

OBV

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

12What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

NET SALES(Q)

Highest at JPY 3,408.73 MM

OPERATING PROFIT(Q)

Highest at JPY 296.58 MM

OPERATING PROFIT MARGIN(Q)

Highest at 8.7 %

PRE-TAX PROFIT(Q)

Highest at JPY 420.15 MM

NET PROFIT(Q)

Highest at JPY 278.44 MM

EPS(Q)

Highest at JPY 66.14

-4What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 19.65%

CASH AND EQV(HY)

Lowest at JPY 7,017.53 MM

Here's what is working for Seki Co., Ltd.

Net Sales

Highest at JPY 3,408.73 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 296.58 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 8.7 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 420.15 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 278.44 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 278.44 MM has Grown at 71.72%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 66.14

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Depreciation

Highest at JPY 156.64 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Seki Co., Ltd.

Cash and Eqv

Lowest at JPY 7,017.53 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend Payout Ratio

Lowest at 19.65%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)