Sekisui Kasei Co., Ltd. (4228) 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

Nishikawa Rubber Co., Ltd.

Yorozu Corp.

Yachiyo Industry Co., Ltd.

Ultrafabrics Holdings Co., Ltd.

Nihon Tokushu Toryo Co., Ltd.

Sekisui Kasei Co., Ltd.

Ohashi Technica Inc.

IJTT Co., Ltd.

Furukawa Battery Co., Ltd.

Yutaka Giken Co., Ltd.

Taiho Kogyo Co., Ltd.

Why is Sekisui Kasei Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.43%

The company has been able to generate a Return on Capital Employed (avg) of 1.43% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate -2.30% of over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 0.79% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -2.30% of over the last 5 years

Flat results in Jun 26

NET SALES(Q) At JPY 25,609 MM has Fallen at -10.09%
INTEREST(Q) At JPY 162 MM has Grown at 11.72%
INVENTORY TURNOVER RATIO(HY) Lowest at 5.78 times

With ROCE of 2.61%, it has a very attractive valuation with a 0.75 Enterprise value to Capital Employed

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 70.56%, its profits have fallen by -305.2%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sekisui Kasei Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Sekisui Kasei Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sekisui Kasei Co., Ltd.

70.56%

0.82

42.47%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.76%

EBIT Growth (5y)

-2.30%

EBIT to Interest (avg)

2.12

Debt to EBITDA (avg)

4.04

Net Debt to Equity (avg)

0.62

Sales to Capital Employed (avg)

1.44

Tax Ratio

100.00%

Dividend Payout Ratio

31.83%

Pledged Shares

Institutional Holding

ROCE (avg)

1.64%

ROE (avg)

0.79%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.57

EV to EBIT

28.77

EV to EBITDA

7.94

EV to Capital Employed

0.75

EV to Sales

0.48

PEG Ratio

Dividend Yield

ROCE (Latest)

2.61%

ROE (Latest)

-5.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

19What is working for the Company

ROCE(HY)

Highest at 7.24%

PRE-TAX PROFIT(Q)

At JPY 2,384 MM has Grown at 161.4%

RAW MATERIAL COST(Y)

Fallen by -29.75% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 53.35 %

OPERATING PROFIT(Q)

Highest at JPY 2,284 MM

NET PROFIT(Q)

At JPY 1,821.22 MM has Grown at 69.14%

-14What is not working for the Company

NET SALES(Q)

At JPY 25,609 MM has Fallen at -10.09%

INTEREST(Q)

At JPY 162 MM has Grown at 11.72%

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.78 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.29 times

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

Pre-Tax Profit

At JPY 2,384 MM has Grown at 161.4%

over average net sales of the previous four periods of JPY 912 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Operating Profit

Highest at JPY 2,284 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Net Profit

At JPY 1,821.22 MM has Grown at 69.14%

over average net sales of the previous four periods of JPY 1,076.77 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at 53.35 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -29.75% (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 Kasei Co., Ltd.

Net Sales

At JPY 25,609 MM has Fallen at -10.09%

over average net sales of the previous four periods of JPY 28,483.75 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest

At JPY 162 MM has Grown at 11.72%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 5.78 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.29 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio