Sekichu Co., Ltd. (9976) 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

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Sekichu Co., Ltd.

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Why is Sekichu Co., Ltd. ?

Poor Management Efficiency with a low ROE of 4.72%

The company has been able to generate a Return on Equity (avg) of 4.72% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a -0.40% CAGR growth in Net Sales over the last 5 years

The company has been able to generate a Return on Equity (avg) of 4.72% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -0.40% over the last 5 years

Flat results in May 26

INTEREST(Q) Highest at JPY 15.24 MM

With ROE of 3.96%, it has a very expensive valuation with a 0.50 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 4.60%, its profits have risen by 1.8% ; the PEG ratio of the company is 7

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 Furniture, Home Furnishing)

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

Is Sekichu Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sekichu Co., Ltd.

4.7%

-0.41

39.68%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.40%

EBIT Growth (5y)

-8.94%

EBIT to Interest (avg)

97.58

Debt to EBITDA (avg)

1.31

Net Debt to Equity (avg)

0.29

Sales to Capital Employed (avg)

2.09

Tax Ratio

32.62%

Dividend Payout Ratio

41.07%

Pledged Shares

Institutional Holding

ROCE (avg)

5.19%

ROE (avg)

4.72%

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

0.50

EV to EBIT

14.58

EV to EBITDA

8.35

EV to Capital Employed

0.60

EV to Sales

0.28

PEG Ratio

7.04

Dividend Yield

ROCE (Latest)

4.14%

ROE (Latest)

3.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

Mildly Bullish

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)

Highest at 3,183.55

RAW MATERIAL COST(Y)

Fallen by -2.22% (YoY

OPERATING PROFIT(Q)

Highest at JPY 485.14 MM

OPERATING PROFIT MARGIN(Q)

Highest at 6.01 %

PRE-TAX PROFIT(Q)

Highest at JPY 362.94 MM

NET PROFIT(Q)

Highest at JPY 253.07 MM

EPS(Q)

Highest at JPY 46.63

-10What is not working for the Company

INTEREST(Q)

Highest at JPY 15.24 MM

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

Interest Coverage Ratio

Highest at 3,183.55

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At JPY 362.94 MM has Grown at 104.14%

over average net sales of the previous four periods of JPY 177.79 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 253.07 MM has Grown at 115.58%

over average net sales of the previous four periods of JPY 117.39 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Profit

Highest at JPY 485.14 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 6.01 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 362.94 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 253.07 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 46.63

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -2.22% (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 Sekichu Co., Ltd.

Interest

At JPY 15.24 MM has Grown at 15.07%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 15.24 MM

in the last five periods and Increased by 15.07% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)