Sincere Co., Ltd. (Japan) (7782) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Create Medic Co., Ltd.

Kawamoto Corp.

Sincere Co., Ltd. (Japan)

Kowa Co. Ltd. (Osaka)

JMS Co., Ltd.

Techno Medica Co., Ltd.

Precision System Science Co., Ltd.

Immuno-Biological Laboratories Co., Ltd.

3-D Matrix Ltd.

Koken Ltd.

Shigematsu Works Co., Ltd.

Why is Sincere Co., Ltd. (Japan) ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 45.32

Healthy long term growth as Operating profit has grown by an annual rate 29.93%

Negative results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 2,385.14
DEBT-EQUITY RATIO (HY) Highest at 10.49 %
INTEREST(Q) Highest at JPY 6.02 MM

With ROE of 13.85%, it has a very attractive valuation with a 1.62 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 -1.14%, its profits have risen by 63.6% ; the PEG ratio of the company is 0.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.14% 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 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sincere Co., Ltd. (Japan)

-1.14%

0.32

43.56%

Japan Nikkei 225

28.54%

1.11

25.75%

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)

29.93%

EBIT to Interest (avg)

45.32

Debt to EBITDA (avg)

0.60

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

1.40

Tax Ratio

32.77%

Dividend Payout Ratio

40.22%

Pledged Shares

Institutional Holding

ROCE (avg)

11.92%

ROE (avg)

8.80%

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

1.62

EV to EBIT

8.12

EV to EBITDA

6.96

EV to Capital Employed

1.53

EV to Sales

0.70

PEG Ratio

0.18

Dividend Yield

ROCE (Latest)

18.86%

ROE (Latest)

13.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

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

9What is working for the Company

NET PROFIT(HY)

At JPY 178.16 MM has Grown at 91.97%

ROCE(HY)

Highest at 14.07%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.26%

NET SALES(Q)

Highest at JPY 1,991.44 MM

-13What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 2,385.14

DEBT-EQUITY RATIO (HY)

Highest at 10.49 %

INTEREST(Q)

Highest at JPY 6.02 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.21 %

Here's what is working for Sincere Co., Ltd. (Japan)

Net Profit

At JPY 178.16 MM has Grown at 91.97%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 1,991.44 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 1,991.44 MM has Grown at 21.13%

over average net sales of the previous four periods of JPY 1,644.03 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 4.26%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Sincere Co., Ltd. (Japan)

Interest Coverage Ratio

Lowest at 2,385.14

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 6.02 MM

in the last five periods and Increased by 9.96% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 7.21 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 10.49 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio