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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Why is Sekichu Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 0.48% over the last 5 years

With a fall in Net Sales of -6.74%, the company declared Very Negative results in Nov 25

The company has declared negative results for the last 6 consecutive quarters
INTEREST(HY) At JPY 24.58 MM has Grown at 133.3%
PRE-TAX PROFIT(Q) At JPY 56.92 MM has Fallen at -66.98%
ROCE(HY) Lowest at 3.51%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.55% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

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.

-1.55%

-0.47

40.47%

Japan Nikkei 225

41.2%

1.45

28.34%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.48%

EBIT Growth (5y)

4.67%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.78

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

2.19

Tax Ratio

24.97%

Dividend Payout Ratio

44.20%

Pledged Shares

Institutional Holding

ROCE (avg)

6.23%

ROE (avg)

5.05%

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

0.48

EV to EBIT

15.19

EV to EBITDA

8.71

EV to Capital Employed

0.60

EV to Sales

0.28

PEG Ratio

Dividend Yield

ROCE (Latest)

3.93%

ROE (Latest)

4.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-24What is not working for the Company

INTEREST(HY)

At JPY 24.58 MM has Grown at 133.3%

PRE-TAX PROFIT(Q)

At JPY 56.92 MM has Fallen at -66.98%

ROCE(HY)

Lowest at 3.51%

DEBTORS TURNOVER RATIO(HY)

Lowest at 24.06 times

INTEREST COVERAGE RATIO(Q)

Lowest at 881.86

NET SALES(Q)

Lowest at JPY 7,718.74 MM

OPERATING PROFIT(Q)

Lowest at JPY 108.49 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.41 %

NET PROFIT(Q)

Lowest at JPY 40.62 MM

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

Interest

At JPY 24.58 MM has Grown at 133.3%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 56.92 MM has Fallen at -66.98%

over average net sales of the previous four periods of JPY 172.36 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 40.62 MM has Fallen at -67.69%

over average net sales of the previous four periods of JPY 125.73 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 881.86

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 24.06 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at JPY 7,718.74 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 108.49 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 1.41 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at JPY 40.62 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)