SHOWA SHINKU CO., LTD. (6384) 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

SHOWA SHINKU CO., LTD.

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Why is SHOWA SHINKU CO., LTD. ?

NET SALES(Q) At JPY 3,856.57 MM has Grown at 62.99%
ROCE(HY) Highest at 7.3%
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost

With ROE of 5.94%, it has a very attractive valuation with a 0.95 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 17.31%, its profits have risen by 108.2% ; the PEG ratio of the company is 0.2

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to SHOWA SHINKU 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 SHOWA SHINKU CO., LTD. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

SHOWA SHINKU CO., LTD.

-100.0%

0.49

29.36%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.00%

EBIT Growth (5y)

-9.59%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

0.69

Tax Ratio

25.97%

Dividend Payout Ratio

49.82%

Pledged Shares

Institutional Holding

ROCE (avg)

14.19%

ROE (avg)

6.81%

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

0.95

EV to EBIT

5.51

EV to EBITDA

4.37

EV to Capital Employed

0.90

EV to Sales

0.53

PEG Ratio

0.15

Dividend Yield

ROCE (Latest)

16.28%

ROE (Latest)

5.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

24What is working for the Company

NET SALES(Q)

At JPY 3,856.57 MM has Grown at 62.99%

ROCE(HY)

Highest at 7.3%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -19.07% (YoY

CASH AND EQV(HY)

Highest at JPY 12,687.55 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.87 times

OPERATING PROFIT(Q)

Highest at JPY 965.33 MM

OPERATING PROFIT MARGIN(Q)

Highest at 25.03 %

PRE-TAX PROFIT(Q)

Highest at JPY 904.32 MM

NET PROFIT(Q)

Highest at JPY 689.85 MM

EPS(Q)

Highest at JPY 111.68

-1What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 62.68%

Here's what is working for SHOWA SHINKU CO., LTD.

Net Sales

At JPY 3,856.57 MM has Grown at 62.99%

over average net sales of the previous four periods of JPY 2,366.16 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 904.32 MM has Grown at 273.83%

over average net sales of the previous four periods of JPY 241.91 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 689.85 MM has Grown at 310.66%

over average net sales of the previous four periods of JPY 167.99 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Profit

Highest at JPY 965.33 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 25.03 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 904.32 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 689.85 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 111.68

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 12,687.55 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.87 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -19.07% (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 68 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Here's what is not working for SHOWA SHINKU CO., LTD.

Dividend Payout Ratio

Lowest at 62.68%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)