Shin Nippon Biomedical Laboratories, Ltd. (2395) 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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Shin Nippon Biomedical Laboratories, Ltd.

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Mitsubishi Research Institute, Inc.

Why is Shin Nippon Biomedical Laboratories, Ltd. ?

The company is Net-Debt Free

The company is Net-Debt Free

High Debt company with Weak Long Term Fundamental Strength

The company has declared Negative results for the last 4 consecutive quarters

NET SALES(HY) At JPY 17,758.18 MM has Grown at -10.79%
ROCE(HY) Lowest at 10.99%
DIVIDEND PAYOUT RATIO(Y) Lowest at 54.4%

With ROCE of 2.70%, it has a very attractive valuation with a 0.90 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.43%, its profits have fallen by -17%

Below par performance in long term as well as near term

Along with generating -1.43% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shin Nippon Biomedical Laboratories, Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Shin Nippon Biomedical Laboratories, Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shin Nippon Biomedical Laboratories, Ltd.

1.03%

0.12

38.04%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.04%

EBIT Growth (5y)

12.73%

EBIT to Interest (avg)

25.77

Debt to EBITDA (avg)

2.35

Net Debt to Equity (avg)

0.85

Sales to Capital Employed (avg)

0.42

Tax Ratio

27.42%

Dividend Payout Ratio

45.58%

Pledged Shares

Institutional Holding

ROCE (avg)

10.42%

ROE (avg)

24.24%

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

0.85

EV to EBIT

33.37

EV to EBITDA

13.31

EV to Capital Employed

0.90

EV to Sales

2.25

PEG Ratio

Dividend Yield

ROCE (Latest)

2.70%

ROE (Latest)

7.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

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

9What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 1,408.38 MM has Grown at 314.57%

NET PROFIT(Q)

At JPY 1,064.04 MM has Grown at 301.21%

RAW MATERIAL COST(Y)

Fallen by -8.75% (YoY

CASH AND EQV(HY)

Highest at JPY 32,870.55 MM

NET SALES(Q)

At JPY 7,868.87 MM has Grown at 21.48%

-11What is not working for the Company

INTEREST(Q)

Highest at JPY 106.94 MM

Here's what is working for Shin Nippon Biomedical Laboratories, Ltd.

Pre-Tax Profit

At JPY 1,408.38 MM has Grown at 314.57%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,064.04 MM has Grown at 301.21%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 7,868.87 MM has Grown at 21.48%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 32,870.55 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -8.75% (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 Shin Nippon Biomedical Laboratories, Ltd.

Interest

At JPY 106.94 MM has Grown at 20.68%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 106.94 MM

in the last five periods and Increased by 20.68% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)