Shikibo Ltd. (3109) 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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Shikibo Ltd.

Why is Shikibo Ltd. ?

Poor Management Efficiency with a low ROCE of 2.48%

The company has been able to generate a Return on Capital Employed (avg) of 2.48% signifying low profitability per unit of total capital (equity and debt)

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

Poor long term growth as Net Sales has grown by an annual rate of 0.55% and Operating profit at -7.21% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 2.72% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 0.55% and Operating profit at -7.21% over the last 5 years

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 Garments & Apparels)

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

Is Shikibo Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shikibo Ltd.

5.52%

-0.05

16.44%

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)

0.55%

EBIT Growth (5y)

-7.21%

EBIT to Interest (avg)

5.00

Debt to EBITDA (avg)

6.14

Net Debt to Equity (avg)

0.56

Sales to Capital Employed (avg)

0.66

Tax Ratio

26.11%

Dividend Payout Ratio

68.75%

Pledged Shares

Institutional Holding

ROCE (avg)

2.48%

ROE (avg)

2.72%

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

0.35

EV to EBIT

23.78

EV to EBITDA

9.42

EV to Capital Employed

0.58

EV to Sales

0.82

PEG Ratio

4.84

Dividend Yield

0.05%

ROCE (Latest)

2.45%

ROE (Latest)

2.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

3What is working for the Company

ROCE(HY)

Highest at 4.21%

EPS(Q)

Highest at JPY 57.5

-22What is not working for the Company

INTEREST(HY)

At JPY 180 MM has Grown at 39.53%

INTEREST COVERAGE RATIO(Q)

Lowest at 788.17

RAW MATERIAL COST(Y)

Grown by 5.87% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 66.49 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.82 times

OPERATING PROFIT(Q)

Lowest at JPY 733 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.42 %

PRE-TAX PROFIT(Q)

Lowest at JPY 134 MM

NET PROFIT(Q)

Lowest at JPY 121.68 MM

Here's what is working for Shikibo Ltd.

EPS

Highest at JPY 57.5

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Here's what is not working for Shikibo Ltd.

Interest

At JPY 180 MM has Grown at 39.53%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 134 MM has Fallen at -63.29%

over average net sales of the previous four periods of JPY 365 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest Coverage Ratio

Lowest at 788.17

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At JPY 121.68 MM has Fallen at -53.85%

over average net sales of the previous four periods of JPY 263.64 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit

Lowest at JPY 733 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 7.42 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 134 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 121.68 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at 66.49 %

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

Inventory Turnover Ratio

Lowest at 2.82 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 5.87% (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