Shanon, Inc. (3976) 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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Why is Shanon, Inc. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate -7.04% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate -7.04% of over the last 5 years

The company has declared negative results in Jan'2025 after 3 consecutive positive quarters

NET SALES(Q) Lowest at JPY 642.86 MM
PRE-TAX PROFIT(Q) Fallen at -42.08%
NET PROFIT(Q) Fallen at -37.51%

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 -6.44%, its profits have risen by 113.8% ; the PEG ratio of the company is 0.5

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.44% 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 Miscellaneous)

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

Is Shanon, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanon, Inc.

-100.0%

-0.32

34.95%

Japan Nikkei 225

38.94%

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)

10.78%

EBIT Growth (5y)

-7.04%

EBIT to Interest (avg)

-18.47

Debt to EBITDA (avg)

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

2.53

Tax Ratio

23.30%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.89%

ROE (avg)

4.69%

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

2.54

EV to EBIT

54.68

EV to EBITDA

9.71

EV to Capital Employed

4.04

EV to Sales

0.54

PEG Ratio

0.50

Dividend Yield

ROCE (Latest)

7.39%

ROE (Latest)

4.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

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

6What is working for the Company

NET PROFIT(HY)

Higher at JPY 73.58 MM

RAW MATERIAL COST(Y)

Fallen by -9.93% (YoY

CASH AND EQV(HY)

Highest at JPY 2,021.04 MM

EPS(Q)

Highest at JPY 13.57

-16What is not working for the Company

NET SALES(Q)

Lowest at JPY 642.86 MM

PRE-TAX PROFIT(Q)

Fallen at -42.08%

NET PROFIT(Q)

Fallen at -37.51%

Here's what is working for Shanon, Inc.

EPS

Highest at JPY 13.57

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 2,021.04 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -9.93% (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 Shanon, Inc.

Net Sales

At JPY 642.86 MM has Fallen at -30.96%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Net Sales

Lowest at JPY 642.86 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

Fallen at -42.08%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Fallen at -37.51%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)