Sinko Industries Ltd. (6458) 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

Nissei ASB Machine Co., Ltd.

Nikkiso Co., Ltd.

ASAHI YUKIZAI Corp.

Sinko Industries Ltd.

DAIWA INDUSTRIES LTD.

Chofu Seisakusho Co., Ltd.

Shibuya Corp.

Furukawa Co., Ltd.

Aida Engineering Ltd.

Shima Seiki Mfg. Ltd.

Hosokawa Micron Corp.

Why is Sinko Industries Ltd. ?

High Management Efficiency with a high ROE of 10.13%

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

Poor long term growth as Net Sales has grown by an annual rate of 5.19% and Operating profit at 2.08% over the last 5 years

Negative results in Jun 25

INTEREST(9M) At JPY 24 MM has Grown at 50%
INTEREST COVERAGE RATIO(Q) Lowest at 22,888.89
DEBT-EQUITY RATIO (HY) Highest at -21.42 %

With ROE of 13.32%, it has a very attractive valuation with a 1.56 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 11.28%, its profits have risen by 20.1%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 11.28% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sinko Industries Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Sinko Industries Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sinko Industries Ltd.

12.37%

0.39

23.76%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.19%

EBIT Growth (5y)

2.08%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

0.83

Tax Ratio

29.28%

Dividend Payout Ratio

46.44%

Pledged Shares

Institutional Holding

ROCE (avg)

18.78%

ROE (avg)

10.13%

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

1.56

EV to EBIT

7.87

EV to EBITDA

6.71

EV to Capital Employed

1.76

EV to Sales

1.38

PEG Ratio

Dividend Yield

0.01%

ROCE (Latest)

22.34%

ROE (Latest)

13.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 8.11%

DEBTORS TURNOVER RATIO(HY)

Highest at 2.73%

-17What is not working for the Company

INTEREST(9M)

At JPY 24 MM has Grown at 50%

INTEREST COVERAGE RATIO(Q)

Lowest at 22,888.89

DEBT-EQUITY RATIO (HY)

Highest at -21.42 %

PRE-TAX PROFIT(Q)

Lowest at JPY 1,917 MM

NET PROFIT(Q)

Lowest at JPY 1,311 MM

EPS(Q)

Lowest at JPY 17.95

Here's what is working for Sinko Industries Ltd.

Inventory Turnover Ratio

Highest at 8.11%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.73%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Sinko Industries Ltd.

Interest

At JPY 9 MM has Grown at 12.5%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 22,888.89

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 9 MM

in the last five periods and Increased by 12.5% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Lowest at JPY 1,917 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 1,311 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 17.95

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at -21.42 %

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