Silver Life Co., Ltd. (9262) 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

Silver Life Co., Ltd.

Tameny, Inc.

teno.Holdings Co., Ltd.

TOKAI Corp. /9729/

Why is Silver Life Co., Ltd. ?

High Management Efficiency with a high ROE of 10.43%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Operating profit has grown by an annual rate -2.85% of over the last 5 years

Positive results in Jan 26

ROCE(HY) Highest at 11.59%
NET SALES(Q) Highest at JPY 4,041.54 MM
RAW MATERIAL COST(Y) Fallen by -8.63% (YoY)

With ROE of 11.08%, it has a attractive valuation with a 1.34 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 -6.88%, its profits have risen by 28.3% ; the PEG ratio of the company is 0.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.88% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Silver Life Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Silver Life Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Silver Life Co., Ltd.

-6.88%

-0.70

31.19%

Japan Nikkei 225

69.64%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.61%

EBIT Growth (5y)

-2.85%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.46

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

1.69

Tax Ratio

30.03%

Dividend Payout Ratio

24.75%

Pledged Shares

Institutional Holding

ROCE (avg)

11.93%

ROE (avg)

10.43%

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

1.34

EV to EBIT

9.83

EV to EBITDA

4.96

EV to Capital Employed

1.35

EV to Sales

0.61

PEG Ratio

0.44

Dividend Yield

ROCE (Latest)

13.69%

ROE (Latest)

11.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

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

11What is working for the Company

ROCE(HY)

Highest at 11.59%

NET SALES(Q)

Highest at JPY 4,041.54 MM

RAW MATERIAL COST(Y)

Fallen by -8.63% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -0.68 %

OPERATING PROFIT(Q)

Highest at JPY 615.44 MM

OPERATING PROFIT MARGIN(Q)

Highest at 15.23 %

PRE-TAX PROFIT(Q)

Highest at JPY 433.04 MM

NET PROFIT(Q)

Highest at JPY 269.25 MM

EPS(Q)

Highest at JPY 24.59

-9What is not working for the Company

INTEREST(HY)

At JPY 6.41 MM has Grown at 36.46%

INVENTORY TURNOVER RATIO(HY)

Lowest at 17.3 times

Here's what is working for Silver Life Co., Ltd.

Net Sales

Highest at JPY 4,041.54 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 615.44 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 15.23 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 433.04 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 269.25 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 24.59

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at -0.68 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -8.63% (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 Silver Life Co., Ltd.

Interest

At JPY 6.41 MM has Grown at 36.46%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 17.3 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio