Shinagawa Refractories Co., Ltd. (5351) 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

ASIA PILE HOLDINGS Corp.

Mitani Sekisan Co., Ltd.

Shinagawa Refractories Co., Ltd.

Mitsui Matsushima Holdings Co., Ltd.

Maeda Kosen Co., Ltd.

Nichiha Corp.

Sumitomo Osaka Cement Co., Ltd.

TYK Corp.

Vertex Corp.

Nippon Concrete Industries Co., Ltd.

Nippon Hume Corp.

Why is Shinagawa Refractories Co., Ltd. ?

High Management Efficiency with a high ROCE of 13.44%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 63.94

Poor long term growth as Net Sales has grown by an annual rate of 3.90% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At JPY 480 MM has Grown at 240.43%
INTEREST COVERAGE RATIO(Q) Lowest at 1,799.18
ROCE(HY) Lowest at 9.92%

With ROCE of 11.06%, it has a very attractive valuation with a 0.91 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 14.14%, its profits have fallen by -37.9%

Underperformed the market in the last 1 year

The stock has generated a return of 14.14% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shinagawa Refractories Co., Ltd. should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

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

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

No Data Found

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.90%

EBIT Growth (5y)

6.71%

EBIT to Interest (avg)

65.88

Debt to EBITDA (avg)

0.74

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

1.15

Tax Ratio

31.84%

Dividend Payout Ratio

41.96%

Pledged Shares

Institutional Holding

ROCE (avg)

13.44%

ROE (avg)

13.42%

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

0.88

EV to EBIT

8.25

EV to EBITDA

6.10

EV to Capital Employed

0.91

EV to Sales

0.76

PEG Ratio

Dividend Yield

ROCE (Latest)

11.06%

ROE (Latest)

11.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -8.85% (YoY

CASH AND EQV(HY)

Highest at JPY 52,890 MM

-23What is not working for the Company

INTEREST(HY)

At JPY 480 MM has Grown at 240.43%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,799.18

ROCE(HY)

Lowest at 9.92%

DEBT-EQUITY RATIO (HY)

Highest at 55.92 %

OPERATING PROFIT MARGIN(Q)

Lowest at 11.52 %

PRE-TAX PROFIT(Q)

Fallen at -32.91%

NET PROFIT(Q)

Lowest at JPY 1,656.28 MM

EPS(Q)

Lowest at JPY 38.53

Here's what is working for Shinagawa Refractories Co., Ltd.

Cash and Eqv

Highest at JPY 52,890 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -8.85% (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 Shinagawa Refractories Co., Ltd.

Interest

At JPY 480 MM has Grown at 240.43%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,799.18 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 11.52 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -32.91%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 1,656.28 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

Fallen at -43.25%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 38.53

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at 55.92 %

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