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SMS Co., Ltd.

  • Market Cap: Small Cap
  • Industry: Diversified Commercial Services
  • ISIN: JP3162350007
JPY
1,325.00
-28 (-2.07%)

Dec 11

TKS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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
JAC Recruitment Co., Ltd.
PERSOL Holdings Co., Ltd.
Open Up Group, Inc.
dip Corp.
UT Group Co., Ltd.
Altech Corp.
Fullcast Holdings Co., Ltd.
TechnoPro Holdings, Inc.
SMS Co., Ltd.
Pasona Group, Inc.
en Japan, Inc.
Why is SMS Co., Ltd. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 17.03%
  • Healthy long term growth as Net Sales has grown by an annual rate of 11.64% and Operating profit at 5.12%
  • Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 86.86
2
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%
3
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 -21.76%, its profits have fallen by -16.2%
4
Consistent Underperformance against the benchmark over the last 3 years
  • Along with generating -21.76% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods
stock-recommendationReal-Time Research Report
Verdict Report
How much should you hold?
  1. Overall Portfolio exposure to SMS Co., Ltd. should be less than 10%
  2. Overall Portfolio exposure to Diversified Commercial Services should be less than 30%

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

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

Is SMS Co., Ltd. for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
SMS Co., Ltd.
-21.76%
-0.69
46.26%
Japan Nikkei 225
28.54%
1.11
25.75%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
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)
1.08
Tax Ratio
26.45%
Dividend Payout Ratio
40.17%
Pledged Shares
0
Institutional Holding
0.11%
ROCE (avg)
22.53%
ROE (avg)
17.03%
stock-recommendationValuation
Valuation Scorecard stock-summary
stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary
Factor
Value
P/E Ratio
21
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
NA
Dividend Yield
NA
ROCE (Latest)
16.24%
ROE (Latest)
12.79%
stock-recommendationTechnicals
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend
Financial Trend Scorecard stock-summary
stock-recommendation
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

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