Shibaura Machine Co., Ltd. (6104) 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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Shibaura Machine Co., Ltd.

Why is Shibaura Machine Co., Ltd. ?

Poor Management Efficiency with a low ROE of 7.80%

The company has been able to generate a Return on Equity (avg) of 7.80% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 6.51% CAGR growth in Net Sales over the last 5 years

The company has been able to generate a Return on Equity (avg) of 7.80% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.51% over the last 5 years

With a fall in Net Sales of -31.82%, the company declared Very Negative results in Jun 26

The company has declared negative results for the last 6 consecutive quarters
INTEREST COVERAGE RATIO(Q) Lowest at 463.64
CASH AND EQV(HY) Lowest at JPY 81,027 MM
DEBT-EQUITY RATIO (HY) Highest at -23.74 %

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 Industrial Manufacturing)

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

Is Shibaura Machine Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shibaura Machine Co., Ltd.

6.15%

0.35

43.38%

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)

6.51%

EBIT Growth (5y)

29.28%

EBIT to Interest (avg)

45.93

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

1.24

Tax Ratio

71.05%

Dividend Payout Ratio

321.97%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

12.71%

ROE (avg)

7.80%

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

0.83

EV to EBIT

23.28

EV to EBITDA

10.91

EV to Capital Employed

0.77

EV to Sales

0.52

PEG Ratio

Dividend Yield

ROCE (Latest)

3.30%

ROE (Latest)

1.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -18.11% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1.43 times

-26What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 463.64

CASH AND EQV(HY)

Lowest at JPY 81,027 MM

DEBT-EQUITY RATIO (HY)

Highest at -23.74 %

NET SALES(Q)

Lowest at JPY 21,119 MM

OPERATING PROFIT(Q)

Lowest at JPY 102 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.48 %

PRE-TAX PROFIT(Q)

Lowest at JPY -279 MM

NET PROFIT(Q)

Lowest at JPY -19 MM

Here's what is working for Shibaura Machine Co., Ltd.

Inventory Turnover Ratio

Highest at 1.43 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -18.11% (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 Shibaura Machine Co., Ltd.

Net Sales

At JPY 21,119 MM has Fallen at -31.82%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY -279 MM has Fallen at -127.54%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -19 MM has Fallen at -102.19%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 463.64

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 21,119 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 102 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 0.48 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -279 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -19 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Cash and Eqv

Lowest at JPY 81,027 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -23.74 %

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