Sekisui House, Ltd. (1928) 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

Tokyo Tatemono Co., Ltd.

Daito Trust Construction Co. Ltd.

Hulic Co., Ltd.

Pan Pacific International Holdings Corp.

Mitsui Fudosan Co., Ltd.

Sekisui House, Ltd.

Nomura Real Estate Holdings, Inc.

Mitsubishi Estate Co., Ltd.

AEON Mall Co., Ltd.

Sumitomo Realty & Development Co., Ltd.

Tokyu Fudosan Holdings Corp.

Why is Sekisui House, Ltd. ?

High Management Efficiency with a high ROCE of 13.11%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 41.66

Healthy long term growth as Net Sales has grown by an annual rate of 10.90%

Negative results in Oct 25

INTEREST(9M) At JPY 28,983 MM has Grown at 19.63%
DEBT-EQUITY RATIO (HY) Highest at 86.67 %
INTEREST COVERAGE RATIO(Q) Lowest at 658.51

With ROE of 11.56%, it has a very attractive valuation with a 1.07 Price to Book Value

Over the past year, while the stock has generated a return of 3.83%, its profits have risen by 8% ; the PEG ratio of the company is 1.2

Majority shareholders : Non Institution

Underperformed the market in the last 1 year

The stock has generated a return of 3.83% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sekisui House, Ltd. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

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

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

Is Sekisui House, Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Sekisui House, Ltd.

3.83%

729.63

21.63%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.90%

EBIT Growth (5y)

10.05%

EBIT to Interest (avg)

41.66

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

27.60%

Dividend Payout Ratio

40.19%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

13.11%

ROE (avg)

11.34%

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

1.07

EV to EBIT

10.94

EV to EBITDA

9.53

EV to Capital Employed

1.04

EV to Sales

0.89

PEG Ratio

1.22

Dividend Yield

0.07%

ROCE (Latest)

9.48%

ROE (Latest)

11.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.33% (YoY

-11What is not working for the Company

INTEREST(9M)

At JPY 28,983 MM has Grown at 19.63%

DEBT-EQUITY RATIO (HY)

Highest at 86.67 %

INTEREST COVERAGE RATIO(Q)

Lowest at 658.51

CASH AND EQV(HY)

Lowest at JPY 613,788 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.17 times

OPERATING PROFIT(Q)

Lowest at JPY 66,470 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.22 %

Here's what is working for Sekisui House, Ltd.

Raw Material Cost

Fallen by -0.33% (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 House, Ltd.

Interest

At JPY 28,983 MM has Grown at 19.63%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 658.51

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 86.67 % and Grown

In each half year 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

Operating Profit

Lowest at JPY 66,470 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 7.22 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at JPY 613,788 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 1.17 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio