ScoreWhy is Shoei Co. Ltd. (7839) ?
1
High Management Efficiency with a high ROE of 26.50%
2
Company has very low debt and has enough cash to service the debt requirements
3
Healthy long term growth as Net Sales has grown by an annual rate of 11.76% and Operating profit at 15.60%
4
Negative results in Jun 25
- NET SALES(HY) At JPY 15,094.79 MM has Grown at -13%
- ROCE(HY) Lowest at 22.17%
- INVENTORY TURNOVER RATIO(HY) Lowest at 2.43%
5
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 -18.72%, its profits have fallen by -8.9%
6
Below par performance in long term as well as near term
- Along with generating -18.72% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow 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)
-21.01%
-0.28
24.10%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
11.76%
EBIT Growth (5y)
15.60%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.47
Sales to Capital Employed (avg)
1.26
Tax Ratio
29.41%
Dividend Payout Ratio
50.04%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
76.60%
ROE (avg)
26.50%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
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
NA
Dividend Yield
NA
ROCE (Latest)
62.35%
ROE (Latest)
23.38%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Bullish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -3.73% (YoY
CASH AND EQV(HY)
Highest at JPY 28,418.07 MM
-9What is not working for the Company
NET SALES(HY)
At JPY 15,094.79 MM has Grown at -13%
ROCE(HY)
Lowest at 22.17%
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.43%
DEBTORS TURNOVER RATIO(HY)
Lowest at 9.58%
Here's what is working for Shoei Co. Ltd. (7839)
Cash and Eqv
Highest at JPY 28,418.07 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -3.73% (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
Here's what is not working for Shoei Co. Ltd. (7839)
Net Sales
At JPY 15,094.79 MM has Grown at -13%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (JPY MM)
Inventory Turnover Ratio
Lowest at 2.43%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 9.58%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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