Shinden Hightex Corp. (3131) 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

JAPAN ELECTRONIC MATERIALS CORP.

Torex Semiconductor Ltd.

Shinden Hightex Corp.

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TESEC Corp.

Jet Co., Ltd.

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THine Electronics, Inc.

AOI Electronics Co., Ltd.

Takatori Corp.

Digital Media Professionals Inc.

Why is Shinden Hightex Corp. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -2.53% over the last 5 years
The company is Net-Debt Free

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 15.83%

Negative results in Dec 25

NET SALES(HY) At JPY 20,685.89 MM has Grown at -10.36%
DEBTORS TURNOVER RATIO(HY) Lowest at 4.74 times
PRE-TAX PROFIT(Q) At JPY 123.82 MM has Fallen at -36.61%

With ROCE of 13.33%, it has a attractive valuation with a 0.86 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 20.70%, its profits have risen by 49.2% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 20.70% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.12%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shinden Hightex Corp. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

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

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

Is Shinden Hightex Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shinden Hightex Corp.

20.7%

0.51

43.59%

Japan Nikkei 225

88.41%

3.12

27.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.53%

EBIT Growth (5y)

12.76%

EBIT to Interest (avg)

7.45

Debt to EBITDA (avg)

2.37

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

2.90

Tax Ratio

30.86%

Dividend Payout Ratio

37.56%

Pledged Shares

Institutional Holding

ROCE (avg)

15.83%

ROE (avg)

9.21%

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

0.82

EV to EBIT

6.47

EV to EBITDA

6.40

EV to Capital Employed

0.86

EV to Sales

0.20

PEG Ratio

0.23

Dividend Yield

ROCE (Latest)

13.33%

ROE (Latest)

7.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -30.49% (YoY

-11What is not working for the Company

NET SALES(HY)

At JPY 20,685.89 MM has Grown at -10.36%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.74 times

PRE-TAX PROFIT(Q)

At JPY 123.82 MM has Fallen at -36.61%

NET PROFIT(Q)

At JPY 80.11 MM has Fallen at -38.82%

Here's what is working for Shinden Hightex Corp.

Raw Material Cost

Fallen by -30.49% (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 Shinden Hightex Corp.

Net Sales

At JPY 20,685.89 MM has Grown at -10.36%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 123.82 MM has Fallen at -36.61%

over average net sales of the previous four periods of JPY 195.34 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 80.11 MM has Fallen at -38.82%

over average net sales of the previous four periods of JPY 130.95 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debtors Turnover Ratio

Lowest at 4.74 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio