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.

Micronics Japan Co., Ltd.

Kyocera Corp.

Renesas Electronics Corp.

Ferrotec Holdings Corp.

Rorze Corp.

ROHM Co., Ltd.

Socionext, Inc.

Nikon Corp.

Sanken Electric Co., Ltd.

JSR Corp.

Why is Socionext, Inc. ?

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at JPY 7,693 MM
NET PROFIT(HY) At JPY 6,675 MM has Grown at -30.07%
ROCE(HY) Lowest at 6.47%

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 -9.87%, its profits have fallen by -57.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.87% 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.

-9.87%

-0.63

64.99%

Japan Nikkei 225

85.83%

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)

-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

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

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

12What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 4.62 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.44 times

NET SALES(Q)

Highest at JPY 58,694 MM

OPERATING PROFIT(Q)

Highest at JPY 9,724 MM

PRE-TAX PROFIT(Q)

Highest at JPY 5,122 MM

EPS(Q)

Highest at JPY 22.38

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 7,693 MM

NET PROFIT(HY)

At JPY 6,675 MM has Grown at -30.07%

ROCE(HY)

Lowest at 6.47%

RAW MATERIAL COST(Y)

Grown by 28.1% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -32.3 %

Here's what is working for Socionext, Inc.

Net Sales

At JPY 58,694 MM has Grown at 35.64%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

Highest at JPY 58,694 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 9,724 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 5,122 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

EPS

Highest at JPY 22.38

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 4.62 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.44 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 4,574 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.

Operating Cash Flow

Lowest at JPY 7,693 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)

Net Profit

At JPY 6,675 MM has Grown at -30.07%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -32.3 %

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 28.1% (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