Shinwa Co., Ltd. (7607) 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

Sodick Co., Ltd.

Ebara Jitsugyo Co., Ltd.

Maruzen Co., Ltd. (5982)

Iwaki Co. Ltd.

Zuiko Corp.

Shinwa Co., Ltd.

Rheon Automatic Machinery Co., Ltd.

Roland DG Corp.

Aval Data Corp.

Nitto Kohki Co., Ltd.

Nakano Refrigerators Co., Ltd.

Why is Shinwa Co., Ltd. ?

High Management Efficiency with a high ROE of 8.90%

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

Poor long term growth as Operating profit has grown by an annual rate -2.28% of over the last 5 years

Flat results in May 25

NO KEY NEGATIVE TRIGGERS

With ROE of 7.26%, it has a very attractive valuation with a 1.01 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 6.69%, its profits have risen by 21.1% ; the PEG ratio of the company is 0.7

Underperformed the market in the last 1 year

The stock has generated a return of 6.69% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shinwa 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 Shinwa Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shinwa Co., Ltd.

4.88%

0.49

23.47%

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)

3.25%

EBIT Growth (5y)

-2.28%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.50

Sales to Capital Employed (avg)

1.91

Tax Ratio

30.80%

Dividend Payout Ratio

50.02%

Pledged Shares

Institutional Holding

ROCE (avg)

26.96%

ROE (avg)

8.90%

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

1.01

EV to EBIT

5.20

EV to EBITDA

4.13

EV to Capital Employed

1.03

EV to Sales

0.27

PEG Ratio

0.66

Dividend Yield

ROCE (Latest)

19.78%

ROE (Latest)

7.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

11What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 493,609.84

RAW MATERIAL COST(Y)

Fallen by -8.69% (YoY

CASH AND EQV(HY)

Highest at JPY 49,912.48 MM

DEBT-EQUITY RATIO (HY)

Lowest at -62.57 %

DEBTORS TURNOVER RATIO(HY)

Highest at 4.62%

OPERATING PROFIT(Q)

Highest at JPY 1,806.61 MM

OPERATING PROFIT MARGIN(Q)

Highest at 8.13 %

PRE-TAX PROFIT(Q)

Highest at JPY 1,513.89 MM

NET PROFIT(Q)

Highest at JPY 1,024.92 MM

EPS(Q)

Highest at JPY 76.48

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Shinwa Co., Ltd.

Interest Coverage Ratio

Highest at 493,609.84

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at JPY 1,806.61 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 8.13 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 1,513.89 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,024.92 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 76.48

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 49,912.48 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -62.57 %

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 4.62%

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 -8.69% (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 286.86 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)