ShinMaywa Industries, Ltd. (7224) 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

Nippon Avionics Co., Ltd.

Mitsubishi Heavy Industries, Ltd.

Kawasaki Heavy Industries Ltd.

ShinMaywa Industries, Ltd.

Tokyo Keiki, Inc.

Asahi-Seiki Manufacturing Co., Ltd.

ACSL Ltd.

ispace, Inc.

Hosoya Pyro-Engineering Co., Ltd.

Miroku Corp.

JAMCO Corp.

Why is ShinMaywa Industries, Ltd. ?

High Management Efficiency with a high ROCE of 8.81%

Poor long term growth as Net Sales has grown by an annual rate of 3.23% and Operating profit at 1.71% over the last 5 years

Flat results in Dec 25

INTEREST(HY) At JPY 368 MM has Grown at 82.18%
INVENTORY TURNOVER RATIO(HY) Lowest at 3.25 times

With ROCE of 10.37%, it has a very attractive valuation with a 0.94 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 59.93%, its profits have risen by 19% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 0.1

Market Beating performance in long term as well as near term

Along with generating 59.93% returns in the last 1 year, the stock has outperformed 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 ShinMaywa Industries, Ltd. should be less than 10%
Overall Portfolio exposure to Aerospace & Defense should be less than 30%

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

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

Is ShinMaywa Industries, Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

ShinMaywa Industries, Ltd.

-100.0%

1.77

38.52%

Japan Nikkei 225

38.94%

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)

3.23%

EBIT Growth (5y)

1.71%

EBIT to Interest (avg)

32.97

Debt to EBITDA (avg)

1.68

Net Debt to Equity (avg)

0.20

Sales to Capital Employed (avg)

1.56

Tax Ratio

31.02%

Dividend Payout Ratio

38.35%

Pledged Shares

Institutional Holding

ROCE (avg)

8.80%

ROE (avg)

7.71%

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

0.93

EV to EBIT

9.06

EV to EBITDA

6.45

EV to Capital Employed

0.94

EV to Sales

0.47

PEG Ratio

0.60

Dividend Yield

0.07%

ROCE (Latest)

10.37%

ROE (Latest)

8.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

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

7What is working for the Company

ROCE(HY)

Highest at 9.23%

RAW MATERIAL COST(Y)

Fallen by -4.97% (YoY

CASH AND EQV(HY)

Highest at JPY 45,626 MM

PRE-TAX PROFIT(Q)

Highest at JPY 5,286 MM

NET PROFIT(Q)

At JPY 3,550 MM has Grown at 99.02%

-9What is not working for the Company

INTEREST(HY)

At JPY 368 MM has Grown at 82.18%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.25 times

Here's what is working for ShinMaywa Industries, Ltd.

Pre-Tax Profit

Highest at JPY 5,286 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 5,286 MM has Grown at 85.54%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 3,550 MM has Grown at 99.02%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 45,626 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -4.97% (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

Depreciation

Highest at JPY 1,627 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for ShinMaywa Industries, Ltd.

Interest

At JPY 368 MM has Grown at 82.18%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 3.25 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio