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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

O-Well Corp.

SHOWA SHINKU CO., LTD.

Kaji Technology Corp.

Ichikawa Co., Ltd.

Daido Kogyo Co., Ltd.

Howa Machinery, Ltd.

Ishikawa Seisakusho, Ltd.

Shinpo Co. Ltd.

Taiyo Koki Co., Ltd.

Kawata Mfg. Co., Ltd.

Kitazawa Sangyo Co., Ltd.

Why is Shinpo Co. Ltd. ?

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

INTEREST(HY) At JPY 2.38 MM has Grown at 1,344.24%
NET SALES(HY) At JPY 3,520.03 MM has Grown at -12.93%
ROCE(HY) Lowest at 6.72%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.96% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Shinpo Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shinpo Co. Ltd.

-4.96%

-1.01

15.24%

Japan Nikkei 225

36.73%

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)

3.38%

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

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-26What is not working for the Company

INTEREST(HY)

At JPY 2.38 MM has Grown at 1,344.24%

NET SALES(HY)

At JPY 3,520.03 MM has Grown at -12.93%

ROCE(HY)

Lowest at 6.72%

INTEREST COVERAGE RATIO(Q)

Lowest at 18,065.98

RAW MATERIAL COST(Y)

Grown by 8.06% (YoY

CASH AND EQV(HY)

Lowest at JPY 4,180.06 MM

DEBT-EQUITY RATIO (HY)

Highest at -22.63 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.65 times

OPERATING PROFIT MARGIN(Q)

Lowest at 11.78 %

PRE-TAX PROFIT(Q)

At JPY 180.2 MM has Fallen at -30.75%

NET PROFIT(Q)

At JPY 117.05 MM has Fallen at -32.85%

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

Interest

At JPY 2.38 MM has Grown at 1,344.24%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 3,520.03 MM has Grown at -12.93%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest Coverage Ratio

Lowest at 18,065.98

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 11.78 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At JPY 180.2 MM has Fallen at -30.75%

over average net sales of the previous four periods of JPY 260.2 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 117.05 MM has Fallen at -32.85%

over average net sales of the previous four periods of JPY 174.3 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Cash and Eqv

Lowest at JPY 4,180.06 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -22.63 %

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

Debtors Turnover Ratio

Lowest at 8.65 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 8.06% (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