Seven Industries Co., Ltd. (7896) 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

Nihon Decoluxe Co., Ltd.

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Kaneko Seeds Co., Ltd.

Takasho Co., Ltd.

Hokushin Co., Ltd.

Seven Industries Co., Ltd.

Why is Seven Industries Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.16%

The company has been able to generate a Return on Capital Employed (avg) of 3.16% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Operating profit has grown by an annual rate -14.38% of over the last 5 years

INTEREST(HY) At JPY 7 MM has Grown at 40%
PRE-TAX PROFIT(Q) At JPY 7 MM has Fallen at -76.67%
NET PROFIT(Q) At JPY -2 MM has Fallen at -107.14%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 0.92%, its profits have risen by 951.1% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 0.92% 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 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 Paper, Forest & Jute Products)

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

Is Seven Industries Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Seven Industries Co., Ltd.

0.92%

0.42

17.28%

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)

1.04%

EBIT Growth (5y)

-14.38%

EBIT to Interest (avg)

38.74

Debt to EBITDA (avg)

1.17

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

2.01

Tax Ratio

1.07%

Dividend Payout Ratio

48.51%

Pledged Shares

Institutional Holding

ROCE (avg)

3.16%

ROE (avg)

2.93%

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

0.38

EV to EBIT

16.05

EV to EBITDA

9.29

EV to Capital Employed

0.43

EV to Sales

0.19

PEG Ratio

0.01

Dividend Yield

0.19%

ROCE (Latest)

2.68%

ROE (Latest)

2.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

3What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 9.2 times

NET SALES(Q)

Highest at JPY 4,193 MM

-24What is not working for the Company

INTEREST(HY)

At JPY 7 MM has Grown at 40%

PRE-TAX PROFIT(Q)

At JPY 7 MM has Fallen at -76.67%

NET PROFIT(Q)

At JPY -2 MM has Fallen at -107.14%

RAW MATERIAL COST(Y)

Grown by 18.69% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 14.76 %

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

Inventory Turnover Ratio

Highest at 9.2 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at JPY 4,193 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Depreciation

Highest at JPY 72 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 72 MM has Grown at 67.44%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

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

Interest

At JPY 7 MM has Grown at 40%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 7 MM has Fallen at -76.67%

over average net sales of the previous four periods of JPY 30 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -2 MM has Fallen at -107.14%

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

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at 14.76 %

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

Raw Material Cost

Grown by 18.69% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales