Socionext, Inc. () 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

Restar Corp.

Kyocera Corp.

Micronics Japan Co., Ltd.

Rorze Corp.

Ferrotec Holdings Corp.

Renesas Electronics Corp.

ROHM Co., Ltd.

Socionext, Inc.

Nikon Corp.

Sanken Electric Co., Ltd.

JSR Corp.

Why is Socionext, Inc. ?

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

OPERATING CASH FLOW(Y) Lowest at JPY 11,169 MM
ROCE(HY) Lowest at 6.01%
RAW MATERIAL COST(Y) Grown by 21.93% (YoY)

With ROE of 7.32%, it has a expensive valuation with a 2.53 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 39.18%, its profits have fallen by -57.7%

Underperformed the market in the last 1 year

The stock has generated a return of 39.18% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 69.82%

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 Other Electrical Equipment)

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

Is Socionext, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Socionext, Inc.

39.18%

-0.76

58.22%

Japan Nikkei 225

69.82%

2.73

25.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.93%

EBIT Growth (5y)

-40.77%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.53

Sales to Capital Employed (avg)

1.53

Tax Ratio

22.76%

Dividend Payout Ratio

45.55%

Pledged Shares

Institutional Holding

ROCE (avg)

43.41%

ROE (avg)

17.78%

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

2.53

EV to EBIT

24.45

EV to EBITDA

9.96

EV to Capital Employed

3.31

EV to Sales

1.52

PEG Ratio

Dividend Yield

ROCE (Latest)

13.56%

ROE (Latest)

7.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

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

3What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 3.94 times

NET SALES(Q)

Highest at JPY 54,931 MM

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 11,169 MM

ROCE(HY)

Lowest at 6.01%

RAW MATERIAL COST(Y)

Grown by 21.93% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -33 %

PRE-TAX PROFIT(Q)

Fallen at -40.58%

NET PROFIT(Q)

Fallen at -44.27%

Here's what is working for Socionext, Inc.

Net Sales

Highest at JPY 54,931 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 54,931 MM has Grown at 19.2%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 3.94 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Socionext, Inc.

Operating Cash Flow

Lowest at JPY 11,169 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Pre-Tax Profit

Fallen at -40.58%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Fallen at -44.27%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -33 %

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

Raw Material Cost

Grown by 21.93% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales