Signpost Corp. (Tokyo) (3996) 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

PLATZ Co., Ltd.

H.U. Group Holdings, Inc.

TOWA Hi SYSTEM Co., Ltd.

Signpost Corp. (Tokyo)

BML, Inc.

Japan Tissue Engineering Co., Ltd.

I'rom Group Co., Ltd.

Amvis Holdings, Inc.

Uchiyama Holdings Co., Ltd.

CMIC Holdings Co., Ltd.

DNA Chip Research, Inc.

Why is Signpost Corp. (Tokyo) ?

Poor Management Efficiency with a low ROE of 5.07%

The company has been able to generate a Return on Equity (avg) of 5.07% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -64.17

Poor long term growth as Net Sales has grown by an annual rate of 9.03% and Operating profit at 16.70% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -64.17
The company has been able to generate a Return on Equity (avg) of 5.07% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.03% and Operating profit at 16.70% over the last 5 years

Positive results in May 26

INVENTORY TURNOVER RATIO(HY) Highest at 466.74 times
NET SALES(Q) Highest at JPY 908.07 MM
RAW MATERIAL COST(Y) Fallen by -17.73% (YoY)

With ROE of 4.07%, it has a very expensive valuation with a 1.19 Price to Book Value

Over the past year, while the stock has generated a return of -36.86%, its profits have fallen by -70.4%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Signpost Corp. (Tokyo) 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 Signpost Corp. (Tokyo) for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Signpost Corp. (Tokyo)

-36.86%

-1.47

47.95%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.03%

EBIT Growth (5y)

16.70%

EBIT to Interest (avg)

-17.12

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.76

Sales to Capital Employed (avg)

1.37

Tax Ratio

12.35%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

17.97%

ROE (avg)

5.07%

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

1.19

EV to EBIT

9.41

EV to EBITDA

9.36

EV to Capital Employed

1.64

EV to Sales

0.29

PEG Ratio

Dividend Yield

ROCE (Latest)

17.42%

ROE (Latest)

4.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

11What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 466.74 times

NET SALES(Q)

Highest at JPY 908.07 MM

RAW MATERIAL COST(Y)

Fallen by -17.73% (YoY

CASH AND EQV(HY)

Highest at JPY 4,368.62 MM

DEBT-EQUITY RATIO (HY)

Lowest at -110.48 %

DEBTORS TURNOVER RATIO(HY)

Highest at 9.55 times

-1What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 15.33 MM has Fallen at -33.76%

Here's what is working for Signpost Corp. (Tokyo)

Net Sales

Highest at JPY 908.07 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 466.74 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

At JPY 908.07 MM has Grown at 15.72%

over average net sales of the previous four periods of JPY 784.71 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 4,368.62 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -110.48 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 9.55 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -17.73% (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 Signpost Corp. (Tokyo)

Pre-Tax Profit

At JPY 15.33 MM has Fallen at -33.76%

over average net sales of the previous four periods of JPY 23.14 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)