Skymark Airlines, Inc. () 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

ANA HOLDINGS INC.

Skymark Airlines, Inc.

Japan Airlines Co., Ltd.

Keihin Co., Ltd.

Star Flyer, Inc.

Why is Skymark Airlines, Inc. ?

Poor Management Efficiency with a low ROCE of 4.18%

The company has been able to generate a Return on Capital Employed (avg) of 4.18% signifying low profitability per unit of total capital (equity and debt)

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -17.58

Poor long term growth as Net Sales has grown by an annual rate of 5.24% and Operating profit at -22.70% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -17.58
The company has been able to generate a Return on Capital Employed (avg) of 4.18% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 5.24% and Operating profit at -22.70% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(9M) At JPY -1,469 MM has Grown at -847.74%
RAW MATERIAL COST(Y) Grown by 1,290.7% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 62.35 %

With ROCE of 1.34%, it has a very expensive valuation with a 0.94 Enterprise value to Capital Employed

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 -14.78%, its profits have fallen by -80.4%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Skymark Airlines, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Skymark Airlines, Inc.

-14.58%

-1.37

31.79%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.24%

EBIT Growth (5y)

-22.70%

EBIT to Interest (avg)

-17.24

Debt to EBITDA (avg)

0.87

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

1.84

Tax Ratio

54.74%

Dividend Payout Ratio

25.72%

Pledged Shares

Institutional Holding

ROCE (avg)

4.95%

ROE (avg)

4.69%

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

0.91

EV to EBIT

70.33

EV to EBITDA

13.11

EV to Capital Employed

0.94

EV to Sales

0.38

PEG Ratio

Dividend Yield

ROCE (Latest)

1.34%

ROE (Latest)

1.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

OBV

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-22What is not working for the Company

NET PROFIT(9M)

At JPY -1,469 MM has Grown at -847.74%

RAW MATERIAL COST(Y)

Grown by 1,290.7% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 62.35 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 11.75 times

INTEREST(Q)

Highest at JPY 335 MM

OPERATING PROFIT(Q)

Lowest at JPY -2,340 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -9.36 %

Here's what is not working for Skymark Airlines, Inc.

Net Profit

At JPY -1,469 MM has Grown at -847.74%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 335 MM has Grown at 17.96%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 335 MM

in the last five periods and Increased by 17.96% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY -2,340 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -9.36 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 62.35 %

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

Debtors Turnover Ratio

Lowest at 11.75 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 1,290.7% (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