Shoei Co. Ltd. (7839) (7839) 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

ASICS Corp.

Ryohin Keikaku Co., Ltd.

GOLDWIN INC.

TSI Holdings Co., Ltd.

Shoei Co. Ltd. (7839)

Mizuno Corp.

Gunze Ltd.

Wacoal Holdings Corp.

Onward Holdings Co., Ltd.

ABC-MART, INC.

Descente Ltd.

Why is Shoei Co. Ltd. (7839) ?

High Management Efficiency with a high ROE of 26.50%

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

Healthy long term growth as Net Sales has grown by an annual rate of 11.76% and Operating profit at 15.60%

Flat results in Dec 25

INTEREST(HY) At JPY 11.22 MM has Grown at 117.55%
ROCE(HY) Lowest at 21.06%
NET SALES(Q) At JPY 7,513.65 MM has Fallen at -7.13%

With ROE of 23.38%, it has a very attractive valuation with a 3.01 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 -10.68%, its profits have fallen by -8.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -10.68% 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 Shoei Co. Ltd. (7839) should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is Shoei Co. Ltd. (7839) for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shoei Co. Ltd. (7839)

-10.68%

-0.85

25.81%

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)

11.76%

EBIT Growth (5y)

15.60%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.47

Sales to Capital Employed (avg)

1.23

Tax Ratio

29.41%

Dividend Payout Ratio

49.91%

Pledged Shares

Institutional Holding

ROCE (avg)

76.60%

ROE (avg)

26.50%

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

3.01

EV to EBIT

7.70

EV to EBITDA

6.55

EV to Capital Employed

4.80

EV to Sales

2.14

PEG Ratio

Dividend Yield

ROCE (Latest)

62.35%

ROE (Latest)

23.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

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

5What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -50.61 %

CASH AND EQV(HY)

Highest at JPY 35,452.16 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.28 times

DEBTORS TURNOVER RATIO(HY)

Highest at 13 times

-10What is not working for the Company

INTEREST(HY)

At JPY 11.22 MM has Grown at 117.55%

ROCE(HY)

Lowest at 21.06%

NET SALES(Q)

At JPY 7,513.65 MM has Fallen at -7.13%

Here's what is working for Shoei Co. Ltd. (7839)

Debt-Equity Ratio

Lowest at -50.61 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Cash and Eqv

Highest at JPY 35,452.16 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.28 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 13 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Shoei Co. Ltd. (7839)

Interest

At JPY 11.22 MM has Grown at 117.55%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 7,513.65 MM has Fallen at -7.13%

over average net sales of the previous four periods of JPY 8,090.91 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)