Showa System Engineering Corp. (4752) 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

Dawn Corp.

TeamSpirit, Inc.

Hybrid Technologies Co., Ltd.

BlueMeme, Inc.

Showa System Engineering Corp.

Rakumo, Inc.

Beaglee Inc.

Nulab, Inc. (Japan)

ImageONE Co., Ltd.

All About, Inc.

TECHNOLOGIES, Inc.

Why is Showa System Engineering Corp. ?

Weak Long Term Fundamental Strength with a 7.32% CAGR growth in Net Sales over the last 5 years

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of 7.32% over the last 5 years

Negative results in Mar 26

INTEREST(HY) At JPY 0.06 MM has Grown at 66.67%
INTEREST COVERAGE RATIO(Q) Lowest at 691,688.89
RAW MATERIAL COST(Y) Grown by 5.01% (YoY)

With ROE of 13.43%, it has a very attractive valuation with a 1.24 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 2.01%, its profits have risen by 19.4% ; the PEG ratio of the company is 0.5

Underperformed the market in the last 1 year

The stock has generated a return of 2.01% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Showa System Engineering Corp. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is Showa System Engineering Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Showa System Engineering Corp.

2.01%

0.79

20.64%

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)

7.32%

EBIT Growth (5y)

15.54%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.08

Sales to Capital Employed (avg)

1.56

Tax Ratio

28.71%

Dividend Payout Ratio

36.75%

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

11.70%

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

1.24

EV to EBIT

1.23

EV to EBITDA

1.20

EV to Capital Employed

-9.66

EV to Sales

0.15

PEG Ratio

0.48

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

13.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

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

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 8.85

CASH AND EQV(HY)

Highest at JPY 12,302.27 MM

NET SALES(Q)

Highest at JPY 2,303.29 MM

-12What is not working for the Company

INTEREST(HY)

At JPY 0.06 MM has Grown at 66.67%

INTEREST COVERAGE RATIO(Q)

Lowest at 691,688.89

RAW MATERIAL COST(Y)

Grown by 5.01% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 8.11 %

Here's what is working for Showa System Engineering Corp.

Dividend per share

Highest at JPY 8.85 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 2,303.29 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 12,302.27 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Showa System Engineering Corp.

Interest

At JPY 0.06 MM has Grown at 66.67%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 691,688.89

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 8.11 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 5.01% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales