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

ROCE(HY) Lowest at -38.67%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.92 times
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%

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 42.42%, its profits have risen by 2.6% ; the PEG ratio of the company is 8.6

Underperformed the market in the last 1 year

The stock has generated a return of 42.42% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

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?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

SMS Co., Ltd.

42.42%

0.23

37.38%

Japan Nikkei 225

75.22%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.86%

EBIT Growth (5y)

1.85%

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)

1.12

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

3.42

EV to EBIT

21.90

EV to EBITDA

13.36

EV to Capital Employed

3.79

EV to Sales

2.30

PEG Ratio

8.64

Dividend Yield

ROCE (Latest)

17.33%

ROE (Latest)

15.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

7What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 2.92

RAW MATERIAL COST(Y)

Fallen by -5.73% (YoY

NET PROFIT(Q)

Highest at JPY 4,044 MM

-17What is not working for the Company

ROCE(HY)

Lowest at -38.67%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.92 times

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

INTEREST(Q)

Highest at JPY 38 MM

EPS(Q)

Lowest at JPY -231.2

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

Dividend per share

Highest at JPY 2.92 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Profit

Highest at JPY 4,044 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 4,044 MM has Grown at 83.15%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -5.73% (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 1,378 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Depreciation

At JPY 1,378 MM has Grown at 25.16%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for SMS Co., Ltd.

Interest

At JPY 38 MM has Grown at 18.75%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 2.92 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

Highest at JPY 38 MM

in the last five periods and Increased by 18.75% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

EPS

Lowest at JPY -231.2

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)