SMK Corp. (6798) 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

Yamaichi Electronics Co., Ltd.

Takaoka Toko Co., Ltd.

Hagiwara Electric Holdings Co., Ltd.

Nippon Chemi-Con Corp.

Teikoku Tsushin Kogyo Co., Ltd.

I-PEX, Inc.

SMK Corp.

Kyoden Co., Ltd.

Ohara, Inc.

Imagica Group, Inc.

OXIDE Corp.

Why is SMK Corp. ?

Poor Management Efficiency with a low ROE of 4.22%

The company has been able to generate a Return on Equity (avg) of 4.22% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 2.85

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 2.85
The company has been able to generate a Return on Capital Employed (avg) of 1.77% 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 -2.37% over the last 5 years

With a growth in Net Profit of 103.28%, the company declared Very Positive results in Dec 25

NET PROFIT(Q) At JPY 931 MM has Grown at 952.17%
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
RAW MATERIAL COST(Y) Fallen by -15.39% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 9.20%, its profits have fallen by -338.5%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SMK Corp. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is SMK Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

SMK Corp.

-100.0%

0.67

33.30%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.37%

EBIT Growth (5y)

0.73%

EBIT to Interest (avg)

2.86

Debt to EBITDA (avg)

1.40

Net Debt to Equity (avg)

0.15

Sales to Capital Employed (avg)

1.08

Tax Ratio

95.64%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.12%

ROCE (avg)

1.77%

ROE (avg)

4.22%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.54

EV to EBIT

-85.13

EV to EBITDA

9.47

EV to Capital Employed

0.60

EV to Sales

0.42

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

-0.70%

ROE (Latest)

-1.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

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

21What is working for the Company

NET PROFIT(Q)

At JPY 931 MM has Grown at 952.17%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -15.39% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.41 times

DEBTORS TURNOVER RATIO(HY)

Highest at 4.03 times

OPERATING PROFIT(Q)

Highest at JPY 1,188 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.87 %

PRE-TAX PROFIT(Q)

Highest at JPY 1,206 MM

-7What is not working for the Company

INTEREST(HY)

At JPY 128 MM has Grown at 21.9%

Here's what is working for SMK Corp.

Pre-Tax Profit

At JPY 1,206 MM has Grown at 1,654.18%

over average net sales of the previous four periods of JPY 68.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 931 MM has Grown at 952.17%

over average net sales of the previous four periods of JPY -109.25 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Profit

Highest at JPY 1,188 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 9.87 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 1,206 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Inventory Turnover Ratio

Highest at 4.41 times

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 4.03 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -15.39% (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

Here's what is not working for SMK Corp.

Interest

At JPY 128 MM has Grown at 21.9%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)