SK Japan Co., Ltd. (7608) 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

Molitec Steel Co., Ltd.

SK Japan Co., Ltd.

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Otake Corp.

Taiheiyo Kouhatsu Inc.

Nousouken Corp.

Why is SK Japan Co., Ltd. ?

Strong Long Term Fundamental Strength with a 24.82% 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 51.13% signifying high profitability per unit of total capital (equity and debt)

With ROE of 20.19%, it has a very attractive valuation with a 1.86 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 -25.51%, its profits have risen by 43.8%

Real-Time Research Report

Verdict Report

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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

SK Japan Co., Ltd.

-26.01%

-0.03

64.34%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.82%

EBIT Growth (5y)

52.61%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.62

Sales to Capital Employed (avg)

2.37

Tax Ratio

29.45%

Dividend Payout Ratio

29.54%

Pledged Shares

Institutional Holding

ROCE (avg)

60.04%

ROE (avg)

12.71%

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

1.86

EV to EBIT

4.42

EV to EBITDA

4.30

EV to Capital Employed

3.32

EV to Sales

0.51

PEG Ratio

Dividend Yield

ROCE (Latest)

75.21%

ROE (Latest)

20.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

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

7What is working for the Company

NET SALES(HY)

At JPY 9,189.75 MM has Grown at 29.32%

ROCE(HY)

Highest at 22.2%

CASH AND EQV(HY)

Highest at JPY 8,550.33 MM

-1What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 11.02% (YoY

Here's what is working for SK Japan Co., Ltd.

Net Sales

At JPY 9,189.75 MM has Grown at 29.32%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 8,550.33 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for SK Japan Co., Ltd.

Raw Material Cost

Grown by 11.02% (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