ScoreWhy is Sekichu Co., Ltd. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Net Sales has grown by an annual rate of -0.31% over the last 5 years
3
Positive results in May 26
- 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
4
With ROE of 3.80%, it has a very expensive valuation with a 0.51 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 4.04%, its profits have risen by 1.2% ; the PEG ratio of the company is 11.3
5
Underperformed the market in the last 1 year
- The stock has generated a return of 4.04% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 75.22%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Sekichu Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Sekichu Co., Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sekichu Co., Ltd.
4.04%
-0.45
39.26%
Japan Nikkei 225
75.22%
2.67
28.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-0.31%
EBIT Growth (5y)
-14.84%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0.78
Net Debt to Equity (avg)
0.29
Sales to Capital Employed (avg)
2.14
Tax Ratio
24.97%
Dividend Payout Ratio
41.07%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.23%
ROE (avg)
4.72%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
0.51
EV to EBIT
16.23
EV to EBITDA
8.83
EV to Capital Employed
0.61
EV to Sales
0.28
PEG Ratio
11.31
Dividend Yield
NA
ROCE (Latest)
3.74%
ROE (Latest)
3.80%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What 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 periodsMOJO 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 MMMOJO 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 MMMOJO 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 periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 6.01 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 362.94 MM
in the last five periodsMOJO 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 periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 46.63
in the last five periodsMOJO 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)
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