Sekisui Chemical Co., Ltd. (4204) 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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Sekisui Chemical Co., Ltd.

Why is Sekisui Chemical Co., Ltd. ?

Weak Long Term Fundamental Strength with a 9.61% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 4.38% and Operating profit at 9.61% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at JPY 63,541 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 2.61 times
INTEREST COVERAGE RATIO(Q) Lowest at 8,393.93

With ROE of 11.40%, it has a fair valuation with a 1.16 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 -0.22%, its profits have risen by 10.7% ; the PEG ratio of the company is 0.7
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 59.79% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -0.22% returns

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 Other Industrial Products)

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

Is Sekisui Chemical Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sekisui Chemical Co., Ltd.

-0.87%

0.83

23.81%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.38%

EBIT Growth (5y)

9.61%

EBIT to Interest (avg)

96.71

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

1.41

Tax Ratio

26.35%

Dividend Payout Ratio

43.79%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

13.13%

ROE (avg)

10.41%

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

1.16

EV to EBIT

9.53

EV to EBITDA

6.16

EV to Capital Employed

1.15

EV to Sales

0.77

PEG Ratio

0.71

Dividend Yield

ROCE (Latest)

12.08%

ROE (Latest)

11.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

5What is working for the Company

NET PROFIT(HY)

At JPY 48,956.41 MM has Grown at 68.08%

RAW MATERIAL COST(Y)

Fallen by -1.05% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 6.67 times

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 63,541 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.61 times

INTEREST COVERAGE RATIO(Q)

Lowest at 8,393.93

DEBT-EQUITY RATIO (HY)

Highest at 10.38 %

INTEREST(Q)

Highest at JPY 478 MM

Here's what is working for Sekisui Chemical Co., Ltd.

Net Profit

At JPY 48,956.41 MM has Grown at 68.08%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Debtors Turnover Ratio

Highest at 6.67 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -1.05% (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 Sekisui Chemical Co., Ltd.

Interest Coverage Ratio

Lowest at 8,393.93

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 2.61 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Cash Flow

Lowest at JPY 63,541 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Interest

Highest at JPY 478 MM

in the last five periods and Increased by 5.75% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 10.38 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio