Shigematsu Works Co., Ltd. (7980) 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 Shigematsu Works Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 2.92% over the last 5 years
The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 2.92% over the last 5 years

Flat results in Mar 26

DEBT-EQUITY RATIO (HY) Highest at 54.97 %
INTEREST(Q) At JPY 30.22 MM has Grown at 43.17%
DIVIDEND PAYOUT RATIO(Y) Lowest at 21.93%

Underperformed the market in the last 1 year

The stock has generated a return of 0.83% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

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 Pharmaceuticals & Biotechnology)

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

Is Shigematsu Works Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shigematsu Works Co., Ltd.

-100.0%

0.24

49.10%

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)

2.92%

EBIT Growth (5y)

0.16%

EBIT to Interest (avg)

30.21

Debt to EBITDA (avg)

1.65

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

1.04

Tax Ratio

22.88%

Dividend Payout Ratio

15.19%

Pledged Shares

Institutional Holding

ROCE (avg)

8.42%

ROE (avg)

9.05%

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

0.63

EV to EBIT

10.07

EV to EBITDA

5.40

EV to Capital Employed

0.75

EV to Sales

0.69

PEG Ratio

4.83

Dividend Yield

ROCE (Latest)

7.49%

ROE (Latest)

7.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

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

9What is working for the Company

CASH AND EQV(HY)

Highest at JPY 4,023.15 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.37 times

NET SALES(Q)

Highest at JPY 5,150.3 MM

OPERATING PROFIT(Q)

Highest at JPY 888.22 MM

NET PROFIT(Q)

Highest at JPY 486.39 MM

EPS(Q)

Highest at JPY 68.4

-14What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 54.97 %

INTEREST(Q)

At JPY 30.22 MM has Grown at 43.17%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 21.93%

RAW MATERIAL COST(Y)

Grown by 9.64% (YoY

Here's what is working for Shigematsu Works Co., Ltd.

Net Sales

Highest at JPY 5,150.3 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 888.22 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Net Profit

Highest at JPY 486.39 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 68.4

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 4,023.15 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.37 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at JPY 257.92 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Here's what is not working for Shigematsu Works Co., Ltd.

Interest

At JPY 30.22 MM has Grown at 43.17%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 54.97 % and Grown

In each half year 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

Dividend Payout Ratio

Lowest at 21.93%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 9.64% (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