Shinpo Co. Ltd. (5903) 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

SHOWA SHINKU CO., LTD.

O-Well Corp.

Ichikawa Co., Ltd.

Shinpo Co. Ltd.

Kawata Mfg. Co., Ltd.

Daido Kogyo Co., Ltd.

Kitazawa Sangyo Co., Ltd.

Taiyo Koki Co., Ltd.

Howa Machinery, Ltd.

Kaji Technology Corp.

Ishikawa Seisakusho, Ltd.

Why is Shinpo Co. Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 3.38% and Operating profit at 2.79% over the last 5 years

The company declared very negative results in Mar'25 after flat results in Dec'24

INTEREST(HY) At JPY 1.71 MM has Grown at 919.64%
ROCE(HY) Lowest at 8.56%
INTEREST COVERAGE RATIO(Q) Lowest at 19,329.13

With ROE of 9.43%, it has a very attractive valuation with a 1.10 Price to Book Value

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 -3.97%, its profits have fallen by -4.1%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.97% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shinpo Co. Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Shinpo Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shinpo Co. Ltd.

-3.19%

-1.00

16.95%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.38%

EBIT Growth (5y)

2.79%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

1.03

Tax Ratio

34.47%

Dividend Payout Ratio

39.81%

Pledged Shares

Institutional Holding

ROCE (avg)

24.70%

ROE (avg)

9.82%

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

1.10

EV to EBIT

5.51

EV to EBITDA

4.91

EV to Capital Employed

1.14

EV to Sales

0.73

PEG Ratio

Dividend Yield

ROCE (Latest)

20.74%

ROE (Latest)

9.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

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

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 216.68%

DIVIDEND PER SHARE(HY)

Highest at JPY 9.65

-17What is not working for the Company

INTEREST(HY)

At JPY 1.71 MM has Grown at 919.64%

ROCE(HY)

Lowest at 8.56%

INTEREST COVERAGE RATIO(Q)

Lowest at 19,329.13

RAW MATERIAL COST(Y)

Grown by 7.38% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -24.53 %

Here's what is working for Shinpo Co. Ltd.

Dividend Payout Ratio

Highest at 216.68% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Dividend per share

Highest at JPY 9.65

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Depreciation

Highest at JPY 46.42 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Depreciation

At JPY 46.42 MM has Grown at 55.05%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Shinpo Co. Ltd.

Interest

At JPY 1.23 MM has Grown at 153.93%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 19,329.13

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 1.23 MM

in the last five periods and Increased by 153.93% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -24.53 %

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

Raw Material Cost

Grown by 7.38% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales