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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Pasona Group, Inc.

SMS Co., Ltd.

en Japan, Inc.

Why is SMS Co., Ltd. ?

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

INTEREST(HY) At JPY 63 MM has Grown at 70.27%
DEBT-EQUITY RATIO (HY) Highest at -11.65 %
DEBTORS TURNOVER RATIO(HY) Lowest at 3.03%

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 48.96%, 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.

39.38%

-0.15

42.76%

Japan Nikkei 225

38.59%

1.50

26.58%

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

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.65% (YoY

NET SALES(Q)

Highest at JPY 18,672 MM

OPERATING PROFIT(Q)

Highest at JPY 4,688 MM

OPERATING PROFIT MARGIN(Q)

Highest at 25.11 %

PRE-TAX PROFIT(Q)

Highest at JPY 4,785 MM

NET PROFIT(Q)

Highest at JPY 3,940 MM

EPS(Q)

Highest at JPY 47.16

-11What is not working for the Company

INTEREST(HY)

At JPY 63 MM has Grown at 70.27%

DEBT-EQUITY RATIO (HY)

Highest at -11.65 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.03%

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

Net Sales

Highest at JPY 18,672 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 4,688 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 25.11 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 4,785 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 3,940 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 47.16

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by 0.65% (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 1,071 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.

Interest

At JPY 63 MM has Grown at 70.27%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -11.65 %

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 3.03%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio