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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nippon Avionics Co., Ltd.

Tokyo Keiki, Inc.

Kawasaki Heavy Industries Ltd.

ShinMaywa Industries, Ltd.

Asahi-Seiki Manufacturing Co., Ltd.

Mitsubishi Heavy Industries, Ltd.

Miroku Corp.

Hosoya Pyro-Engineering Co., Ltd.

ACSL Ltd.

ispace, Inc.

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 Jun 25

INTEREST(HY) At JPY 573 MM has Grown at 113.81%
INTEREST COVERAGE RATIO(Q) Lowest at 1,542.78
OPERATING PROFIT(Q) Lowest at JPY 2,777 MM

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 38.06%, 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

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?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

ShinMaywa Industries, Ltd.

38.06%

0.88

34.06%

Japan Nikkei 225

28.54%

1.11

25.75%

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)

1.55

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

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 15,179 MM

RAW MATERIAL COST(Y)

Fallen by -0.14% (YoY

CASH AND EQV(HY)

Highest at JPY 55,115 MM

-17What is not working for the Company

INTEREST(HY)

At JPY 573 MM has Grown at 113.81%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,542.78

OPERATING PROFIT(Q)

Lowest at JPY 2,777 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.82 %

PRE-TAX PROFIT(Q)

Lowest at JPY 1,473 MM

NET PROFIT(Q)

Lowest at JPY 905 MM

EPS(Q)

Lowest at JPY 13.68

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

Operating Cash Flow

Highest at JPY 15,179 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Cash and Eqv

Highest at JPY 55,115 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -0.14% (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 ShinMaywa Industries, Ltd.

Interest

At JPY 573 MM has Grown at 113.81%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,542.78

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 2,777 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 4.82 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 1,473 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Fallen at -42.14%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 905 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

Fallen at -40.03%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 13.68

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)