SMS Co., Ltd. (2175) 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

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SMS Co., Ltd.

en Japan, Inc.

Why is SMS Co., Ltd. ?

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

INTEREST(Q) At JPY 32 MM has Grown at 14.29%
INTEREST COVERAGE RATIO(Q) Lowest at 1,921.88
INVENTORY TURNOVER RATIO(HY) Lowest at 88.23 times

With ROE of 12.79%, it has a very attractive valuation with a 2.70 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 36.37%, its profits have fallen by -16.2%

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 Diversified Commercial Services)

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

Is SMS Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

SMS Co., Ltd.

36.37%

-0.37

41.30%

Japan Nikkei 225

36.73%

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)

11.64%

EBIT Growth (5y)

5.12%

EBIT to Interest (avg)

86.86

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

1.10

Tax Ratio

26.45%

Dividend Payout Ratio

40.17%

Pledged Shares

Institutional Holding

0.11%

ROCE (avg)

22.53%

ROE (avg)

17.03%

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

2.70

EV to EBIT

18.85

EV to EBITDA

11.77

EV to Capital Employed

3.06

EV to Sales

1.96

PEG Ratio

Dividend Yield

ROCE (Latest)

16.24%

ROE (Latest)

12.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly 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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.65% (YoY

-24What is not working for the Company

INTEREST(Q)

At JPY 32 MM has Grown at 14.29%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,921.88

INVENTORY TURNOVER RATIO(HY)

Lowest at 88.23 times

OPERATING PROFIT(Q)

Lowest at JPY 615 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.43 %

PRE-TAX PROFIT(Q)

Lowest at JPY -374 MM

NET PROFIT(Q)

Lowest at JPY -332 MM

EPS(Q)

Lowest at JPY -4.04

Here's what is working for SMS Co., Ltd.

Raw Material Cost

Fallen by 1.65% (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

Depreciation

Highest at JPY 1,101 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 SMS Co., Ltd.

Pre-Tax Profit

At JPY -374 MM has Fallen at -346.05%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -332 MM has Fallen at -288.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 32 MM has Grown at 14.29%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,921.88

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 615 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 4.43 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -374 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -332 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -4.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 88.23 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio