Soda Nikka Co., Ltd. (8158) 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

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Soda Nikka Co., Ltd.

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Why is Soda Nikka Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 33.24

With ROE of 7.43%, it has a very attractive valuation with a 0.83 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 -10.44%, its profits have risen by 18.7% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Soda Nikka Co., Ltd. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Soda Nikka Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Soda Nikka Co., Ltd.

-10.44%

-0.28

25.72%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.17%

EBIT Growth (5y)

15.41%

EBIT to Interest (avg)

33.24

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

1.92

Tax Ratio

33.77%

Dividend Payout Ratio

41.45%

Pledged Shares

Institutional Holding

ROCE (avg)

6.86%

ROE (avg)

5.60%

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

0.83

EV to EBIT

9.64

EV to EBITDA

8.08

EV to Capital Employed

0.80

EV to Sales

0.31

PEG Ratio

0.60

Dividend Yield

0.05%

ROCE (Latest)

8.29%

ROE (Latest)

7.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.03% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 42.04%

-20What is not working for the Company

INTEREST(HY)

At JPY 30 MM has Grown at 15.38%

ROCE(HY)

Lowest at 5.35%

INTEREST COVERAGE RATIO(Q)

Lowest at 3,500

CASH AND EQV(HY)

Lowest at JPY 13,761 MM

OPERATING PROFIT(Q)

Lowest at JPY 525 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.28 %

PRE-TAX PROFIT(Q)

At JPY 610 MM has Fallen at -26.37%

NET PROFIT(Q)

At JPY 362 MM has Fallen at -34.03%

Here's what is working for Soda Nikka Co., Ltd.

Inventory Turnover Ratio

Highest at 42.04%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -3.03% (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 Soda Nikka Co., Ltd.

Interest

At JPY 30 MM has Grown at 15.38%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 3,500

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 525 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 3.28 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At JPY 610 MM has Fallen at -26.37%

over average net sales of the previous four periods of JPY 828.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 362 MM has Fallen at -34.03%

over average net sales of the previous four periods of JPY 548.75 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Cash and Eqv

Lowest at JPY 13,761 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents