ScoreWhy is Shofu, Inc. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Healthy long term growth as Operating profit has grown by an annual rate 19.52%
3
Flat results in Dec 25
- INTEREST(Q) At JPY 3 MM has Grown at 50%
- INVENTORY TURNOVER RATIO(HY) Lowest at 1.23 times
- OPERATING PROFIT(Q) Lowest at JPY 1,289 MM
4
With ROE of 10.16%, it has a very attractive valuation with a 1.70 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 -17.45%, its profits have risen by 15.2%
5
Below par performance in long term as well as near term
- Along with generating -17.45% 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 Shofu, Inc. should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Shofu, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Shofu, Inc.
-17.45%
-0.68
23.82%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.19%
EBIT Growth (5y)
19.52%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.26
Sales to Capital Employed (avg)
0.87
Tax Ratio
29.56%
Dividend Payout Ratio
40.33%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
13.51%
ROE (avg)
8.30%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
1.70
EV to EBIT
11.44
EV to EBITDA
9.56
EV to Capital Employed
1.94
EV to Sales
1.59
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
16.98%
ROE (Latest)
10.16%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 0.89% (YoY
CASH AND EQV(HY)
Highest at JPY 20,376 MM
NET SALES(Q)
Highest at JPY 10,019 MM
-9What is not working for the Company
INTEREST(Q)
At JPY 3 MM has Grown at 50%
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.23 times
OPERATING PROFIT(Q)
Lowest at JPY 1,289 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 12.87 %
PRE-TAX PROFIT(Q)
Lowest at JPY 1,267 MM
NET PROFIT(Q)
Lowest at JPY 815 MM
EPS(Q)
Lowest at JPY 22.84
Here's what is working for Shofu, Inc.
Net Sales
Highest at JPY 10,019 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Cash and Eqv
Highest at JPY 20,376 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by 0.89% (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 Shofu, Inc.
Interest
At JPY 3 MM has Grown at 50%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit
Lowest at JPY 1,289 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 12.87 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 1,267 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 815 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Net Profit
At JPY 815 MM has Fallen at -28.37%
over average net sales of the previous four periods of JPY 1,137.75 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 22.84
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Inventory Turnover Ratio
Lowest at 1.23 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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