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.

Renesas Electronics Corp.

Micronics Japan Co., Ltd.

Rorze Corp.

Kyocera Corp.

ROHM Co., Ltd.

Ferrotec Holdings Corp.

Nikon Corp.

Socionext, Inc.

Sanken Electric Co., Ltd.

JSR Corp.

Why is Socionext, Inc. ?

OPERATING CASH FLOW(Y) Lowest at JPY 941 MM
ROCE(HY) Lowest at 6%
RAW MATERIAL COST(Y) Grown by 6.45% (YoY)

With ROE of 7.32%, it has a very expensive valuation with a 3.35 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 -31.31%, its profits have fallen by -57.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -31.31% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

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.

-32.41%

-0.78

68.88%

Japan Nikkei 225

60.14%

2.04

29.37%

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)

1.50

Tax Ratio

25.71%

Dividend Payout Ratio

100.52%

Pledged Shares

Institutional Holding

ROCE (avg)

36.03%

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

3.35

EV to EBIT

33.62

EV to EBITDA

13.70

EV to Capital Employed

4.56

EV to Sales

2.09

PEG Ratio

Dividend Yield

ROCE (Latest)

13.56%

ROE (Latest)

7.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

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

5What is working for the Company

NET SALES(HY)

At JPY 97,733 MM has Grown at 25.58%

DEBTORS TURNOVER RATIO(HY)

Highest at 7.97 times

-27What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 941 MM

ROCE(HY)

Lowest at 6%

RAW MATERIAL COST(Y)

Grown by 6.45% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -27.73 %

OPERATING PROFIT(Q)

Lowest at JPY 3,937 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.08 %

PRE-TAX PROFIT(Q)

Lowest at JPY -782 MM

NET PROFIT(Q)

Lowest at JPY -580 MM

EPS(Q)

Lowest at JPY -3.31

Here's what is working for Socionext, Inc.

Net Sales

At JPY 97,733 MM has Grown at 25.58%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debtors Turnover Ratio

Highest at 7.97 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 4,599 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 Socionext, Inc.

Pre-Tax Profit

At JPY -782 MM has Fallen at -209.07%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -580 MM has Fallen at -225.81%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Cash Flow

Lowest at JPY 941 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)

Operating Profit

Lowest at JPY 3,937 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 10.08 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -782 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 -580 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -3.31

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at -27.73 %

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 6.45% (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