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

ShinMaywa Industries, Ltd.

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JAMCO Corp.

Why is ShinMaywa Industries, Ltd. ?

Positive results in Jun 26

OPERATING CASH FLOW(Y) Highest at JPY 32,415 MM
ROCE(HY) Highest at 10.64%
RAW MATERIAL COST(Y) Fallen by -4% (YoY)

With ROCE of 9.35%, it has a very attractive valuation with a 1.22 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 14.81%, its profits have risen by 14.8% ; the PEG ratio of the company is 1
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you buy?

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, Low Return

Absolute

Risk Adjusted

Volatility

ShinMaywa Industries, Ltd.

14.07%

1.28

34.73%

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)

5.31%

EBIT Growth (5y)

5.02%

EBIT to Interest (avg)

29.05

Debt to EBITDA (avg)

1.41

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

1.59

Tax Ratio

27.85%

Dividend Payout Ratio

32.18%

Pledged Shares

Institutional Holding

ROCE (avg)

9.42%

ROE (avg)

7.73%

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

1.29

EV to EBIT

13.03

EV to EBITDA

9.23

EV to Capital Employed

1.22

EV to Sales

0.69

PEG Ratio

1.00

Dividend Yield

ROCE (Latest)

9.35%

ROE (Latest)

8.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 32,415 MM

ROCE(HY)

Highest at 10.64%

RAW MATERIAL COST(Y)

Fallen by -4% (YoY

CASH AND EQV(HY)

Highest at JPY 69,354 MM

DEBT-EQUITY RATIO (HY)

Lowest at 12.3 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.78 times

PRE-TAX PROFIT(Q)

At JPY 2,730 MM has Grown at 85.34%

NET PROFIT(Q)

At JPY 1,877 MM has Grown at 107.4%

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Operating Cash Flow

Highest at JPY 32,415 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Pre-Tax Profit

At JPY 2,730 MM has Grown at 85.34%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,877 MM has Grown at 107.4%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 69,354 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 12.3 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.78 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -4% (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