Why is SK Japan Co., Ltd. ?
1
Strong Long Term Fundamental Strength with a 14.98% CAGR growth in Net Sales
- Company has very low debt and has enough cash to service the debt requirements
- The company has been able to generate a Return on Capital Employed (avg) of 50.47% signifying high profitability per unit of total capital (equity and debt)
2
With a growth in Operating Profit of 42.55%, the company declared Very Positive results in May 25
- The company has declared positive results for the last 3 consecutive quarters
- NET SALES(HY) At JPY 7,106.27 MM has Grown at 23.45%
- ROCE(HY) Highest at 18.63%
- RAW MATERIAL COST(Y) Fallen by -5.37% (YoY)
3
With ROE of 16.76%, it has a very attractive valuation with a 1.48 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 102.60%, its profits have risen by 28.4% ; the PEG ratio of the company is 0.3
4
Market Beating performance in long term as well as near term
- Along with generating 102.60% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
How much should you buy?
- Overall Portfolio exposure to SK Japan Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Trading & Distributors should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is SK Japan Co., Ltd. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
SK Japan Co., Ltd.
99.0%
1.60
44.50%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality key factors
Factor
Value
Sales Growth (5y)
14.98%
EBIT Growth (5y)
15.04%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.68
Sales to Capital Employed (avg)
2.33
Tax Ratio
26.59%
Dividend Payout Ratio
24.21%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
51.13%
ROE (avg)
11.74%
Valuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
1.48
EV to EBIT
3.63
EV to EBITDA
3.52
EV to Capital Employed
2.48
EV to Sales
0.34
PEG Ratio
0.31
Dividend Yield
NA
ROCE (Latest)
68.34%
ROE (Latest)
16.76%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Bullish
Bullish
OBV
Mildly Bullish
No Trend
Technical Movement
12What is working for the Company
NET SALES(HY)
At JPY 7,106.27 MM has Grown at 23.45%
ROCE(HY)
Highest at 18.63%
RAW MATERIAL COST(Y)
Fallen by -5.37% (YoY
NET PROFIT(9M)
Higher at JPY 794.3 MM
CASH AND EQV(HY)
Highest at JPY 7,312.33 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 8.2%
OPERATING PROFIT(Q)
Highest at JPY 426.69 MM
OPERATING PROFIT MARGIN(Q)
Highest at 12.22 %
-2What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for SK Japan Co., Ltd.
Net Sales
At JPY 7,106.27 MM has Grown at 23.45%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 426.69 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 12.22 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Cash and Eqv
Highest at JPY 7,312.33 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 8.2%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Net Profit
Higher at JPY 794.3 MM
than preceding 12 month period ended May 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (JPY MM)
Raw Material Cost
Fallen by -5.37% (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






