Semba Tohka Industries Co., Ltd. (2916) 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

Nippi, Inc.

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Nakamuraya Co., Ltd.

Pickles Holdings Co., Ltd.

Dairei Co., Ltd.

Yutaka Foods Corp.

Daisho Co., Ltd.

Semba Tohka Industries Co., Ltd.

Como Co., Ltd.

Pietro Co., Ltd.

Yaizu Suisankagaku Industry Co., Ltd.

Why is Semba Tohka Industries Co., Ltd. ?

Weak Long Term Fundamental Strength with a -2.34% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of -0.80% and Operating profit at -2.34% over the last 5 years

INTEREST COVERAGE RATIO(Q) Lowest at 2,582.07
INVENTORY TURNOVER RATIO(HY) Lowest at 3.85 times
INTEREST(Q) Highest at JPY 11.49 MM

With ROCE of 7.36%, it has a expensive valuation with a 0.64 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 -4.68%, its profits have risen by 45.9% ; the PEG ratio of the company is 0.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.68% 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 FMCG)

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

Is Semba Tohka Industries Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Semba Tohka Industries Co., Ltd.

-4.81%

-0.16

12.14%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.80%

EBIT Growth (5y)

-2.34%

EBIT to Interest (avg)

13.23

Debt to EBITDA (avg)

0.57

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

1.20

Tax Ratio

40.48%

Dividend Payout Ratio

30.77%

Pledged Shares

Institutional Holding

ROCE (avg)

5.43%

ROE (avg)

4.35%

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

0.65

EV to EBIT

8.75

EV to EBITDA

4.69

EV to Capital Employed

0.64

EV to Sales

0.41

PEG Ratio

0.30

Dividend Yield

ROCE (Latest)

7.36%

ROE (Latest)

4.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly 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

5What is working for the Company

ROCE(HY)

Highest at 4.51%

CASH AND EQV(HY)

Highest at JPY 7,351.03 MM

DEBT-EQUITY RATIO (HY)

Lowest at -0.38 %

DEBTORS TURNOVER RATIO(HY)

Highest at 4.63 times

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 2,582.07

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.85 times

INTEREST(Q)

Highest at JPY 11.49 MM

OPERATING PROFIT(Q)

Lowest at JPY 296.81 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.4 %

Here's what is working for Semba Tohka Industries Co., Ltd.

Cash and Eqv

Highest at JPY 7,351.03 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -0.38 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 4.63 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Semba Tohka Industries Co., Ltd.

Interest

At JPY 11.49 MM has Grown at 24.54%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,582.07

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 11.49 MM

in the last five periods and Increased by 24.54% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 296.81 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 6.4 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 3.85 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio