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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kyocera Corp.

Ferrotec Holdings Corp.

Restar Corp.

Micronics Japan Co., Ltd.

ROHM Co., Ltd.

Rorze Corp.

Renesas Electronics Corp.

Sanken Electric Co., Ltd.

Nikon Corp.

Socionext, Inc.

JSR Corp.

Why is Socionext, Inc. ?

With a fall in Net Sales of -34.54%, the company declared Very Negative results in Jun 25

The company has declared negative results for the last 3 consecutive quarters
ROCE(HY) Lowest at 9.49%
NET SALES(Q) Lowest at JPY 34,553 MM
OPERATING PROFIT(Q) Lowest at JPY 5,341 MM

With ROE of 15.42%, it has a very attractive valuation with a 2.93 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 -10.60%, its profits have fallen by -20%

Below par performance in long term as well as near term

Along with generating -10.60% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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.

-10.6%

-0.70

65.69%

Japan Nikkei 225

27.57%

1.07

25.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.30%

EBIT Growth (5y)

100.34%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.53

Sales to Capital Employed (avg)

1.61

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

2.93

EV to EBIT

13.13

EV to EBITDA

7.96

EV to Capital Employed

5.11

EV to Sales

1.74

PEG Ratio

Dividend Yield

ROCE (Latest)

38.94%

ROE (Latest)

15.42%

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

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

3What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -53.33 %

RAW MATERIAL COST(Y)

Fallen by -3.22% (YoY

-34What is not working for the Company

ROCE(HY)

Lowest at 9.49%

NET SALES(Q)

Lowest at JPY 34,553 MM

OPERATING PROFIT(Q)

Lowest at JPY 5,341 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 15.46 %

PRE-TAX PROFIT(Q)

Lowest at JPY 717 MM

NET PROFIT(Q)

Lowest at JPY 461 MM

EPS(Q)

Lowest at JPY 2.6

Here's what is working for Socionext, Inc.

Debt-Equity Ratio

Lowest at -53.33 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -3.22% (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

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

Net Sales

At JPY 34,553 MM has Fallen at -34.54%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 717 MM has Fallen at -93.37%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 461 MM has Fallen at -93.91%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 34,553 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 5,341 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 15.46 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 717 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 461 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 2.6

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)