ScoreWhy is Sincere Co., Ltd. (Japan) ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 45.32
2
Healthy long term growth as Operating profit has grown by an annual rate 21.19%
3
The company has declared Negative results for the last 3 consecutive quarters
- NET PROFIT(HY) At JPY 99.83 MM has Grown at -39.56%
- ROCE(HY) Lowest at 9.12%
- RAW MATERIAL COST(Y) Grown by 12.67% (YoY)
4
With ROE of 10.02%, it has a very attractive valuation with a 1.12 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 -21.07%, its profits have fallen by -9.3%
5
Below par performance in long term as well as near term
- Along with generating -21.07% 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 Sincere Co., Ltd. (Japan) 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 Sincere Co., Ltd. (Japan) for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sincere Co., Ltd. (Japan)
-21.07%
-0.01
26.27%
Japan Nikkei 225
75.22%
3.09
27.80%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.23%
EBIT Growth (5y)
21.19%
EBIT to Interest (avg)
45.32
Debt to EBITDA (avg)
0.60
Net Debt to Equity (avg)
0.16
Sales to Capital Employed (avg)
1.43
Tax Ratio
32.77%
Dividend Payout Ratio
41.75%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.92%
ROE (avg)
8.80%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
1.12
EV to EBIT
6.07
EV to EBITDA
5.14
EV to Capital Employed
1.12
EV to Sales
0.43
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
18.43%
ROE (Latest)
10.02%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
NET SALES(HY)
At JPY 3,972.16 MM has Grown at 22.07%
INVENTORY TURNOVER RATIO(HY)
Highest at 4.31 times
DEBTORS TURNOVER RATIO(HY)
Highest at 7.64 times
-18What is not working for the Company
NET PROFIT(HY)
At JPY 99.83 MM has Grown at -39.56%
ROCE(HY)
Lowest at 9.12%
RAW MATERIAL COST(Y)
Grown by 12.67% (YoY
INTEREST(Q)
Highest at JPY 6.47 MM
PRE-TAX PROFIT(Q)
Lowest at JPY 105.06 MM
Here's what is working for Sincere Co., Ltd. (Japan)
Net Sales
At JPY 3,972.16 MM has Grown at 22.07%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Inventory Turnover Ratio
Highest at 4.31 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 7.64 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Sincere Co., Ltd. (Japan)
Interest
At JPY 6.47 MM has Grown at 13.86%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Profit
At JPY 99.83 MM has Grown at -39.56%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Interest
Highest at JPY 6.47 MM
in the last five periods and Increased by 13.86% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Pre-Tax Profit
Lowest at JPY 105.06 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Raw Material Cost
Grown by 12.67% (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
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