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.

Japan Airlines Co., Ltd.

Keihin Co., Ltd.

Skymark Airlines, Inc.

Star Flyer, Inc.

Why is Skymark Airlines, Inc. ?

Poor Management Efficiency with a low ROCE of 4.77%

The company has been able to generate a Return on Capital Employed (avg) of 4.77% signifying low profitability per unit of total capital (equity and debt)
PRE-TAX PROFIT(Q) At JPY 494 MM has Fallen at -74.59%
NET PROFIT(Q) At JPY 486 MM has Fallen at -84.75%
ROCE(HY) Lowest at 1.54%

With ROCE of 8.99%, it has a expensive valuation with a 1.12 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 -26.70%, its profits have fallen by -24%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -26.70% 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 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.

-26.7%

-1.61

29.43%

Japan Nikkei 225

38.94%

1.38

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.10%

EBIT Growth (5y)

16.04%

EBIT to Interest (avg)

-17.58

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

1.76

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

8.30%

Pledged Shares

Institutional Holding

ROCE (avg)

4.18%

ROE (avg)

4.86%

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

1.13

EV to EBIT

12.44

EV to EBITDA

6.23

EV to Capital Employed

1.12

EV to Sales

0.31

PEG Ratio

Dividend Yield

ROCE (Latest)

8.99%

ROE (Latest)

8.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

3What is working for the Company

NET PROFIT(HY)

Higher at JPY 3,735 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 22.72 times

-25What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 494 MM has Fallen at -74.59%

NET PROFIT(Q)

At JPY 486 MM has Fallen at -84.75%

ROCE(HY)

Lowest at 1.54%

RAW MATERIAL COST(Y)

Grown by 10.23% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 55.02 %

INTEREST(Q)

Highest at JPY 244 MM

Here's what is working for Skymark Airlines, Inc.

Debtors Turnover Ratio

Highest at 22.72 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 977 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

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

Pre-Tax Profit

At JPY 494 MM has Fallen at -74.59%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 486 MM has Fallen at -84.75%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 244 MM has Grown at 27.75%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 244 MM

in the last five periods and Increased by 27.75% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 55.02 %

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

Raw Material Cost

Grown by 10.23% (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