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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Create Medic Co., Ltd.

Rion Co., Ltd.

JMS Co., Ltd.

Techno Medica Co., Ltd.

Precision System Science Co., Ltd.

3-D Matrix Ltd.

Seed Co., Ltd. /7743/

Koken Ltd.

Shigematsu Works Co., Ltd.

Japan Medical Dynamic Marketing, Inc.

ReproCELL, Inc.

Why is Shigematsu Works Co., Ltd. ?

With a fall in Net Sales of -1.05%, the company declared Very Negative results in Jun 25

The company has declared negative results for the last 3 consecutive quarters
INTEREST(HY) At JPY 28.12 MM has Grown at 135.19%
PRE-TAX PROFIT(Q) At JPY 22.5 MM has Fallen at -88.07%
INTEREST COVERAGE RATIO(Q) Lowest at 1,632.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.70% 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 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?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shigematsu Works Co., Ltd.

-2.12%

0.23

19.13%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.00%

EBIT Growth (5y)

28.31%

EBIT to Interest (avg)

39.80

Debt to EBITDA (avg)

1.40

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

1.11

Tax Ratio

24.39%

Dividend Payout Ratio

13.66%

Pledged Shares

Institutional Holding

ROCE (avg)

9.16%

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

0.67

EV to EBIT

8.71

EV to EBITDA

5.26

EV to Capital Employed

0.77

EV to Sales

0.66

PEG Ratio

0.22

Dividend Yield

ROCE (Latest)

8.82%

ROE (Latest)

9.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-23What is not working for the Company

INTEREST(HY)

At JPY 28.12 MM has Grown at 135.19%

PRE-TAX PROFIT(Q)

At JPY 22.5 MM has Fallen at -88.07%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,632.7

RAW MATERIAL COST(Y)

Grown by 15.79% (YoY

NET SALES(Q)

Lowest at JPY 2,940.09 MM

OPERATING PROFIT(Q)

Lowest at JPY 212.82 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.24 %

NET PROFIT(Q)

Lowest at JPY 13.79 MM

EPS(Q)

Lowest at JPY 1.94

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

Interest

At JPY 28.12 MM has Grown at 135.19%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 22.5 MM has Fallen at -88.07%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 13.79 MM has Fallen at -89.26%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 1,632.7

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 2,940.09 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 212.82 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 7.24 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 22.5 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 13.79 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 1.94

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 15.79% (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