Sodick Co., Ltd. (6143) 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

Tsugami Corp.

ANEST IWATA Corp.

Nittoku Co., Ltd.

Sodick Co., Ltd.

Torishima Pump Mfg. Co., Ltd.

Denyo Co., Ltd.

Teikoku Electric Manufacturing Co., Ltd.

Nitto Kohki Co., Ltd.

Asahi Diamond Industrial Co., Ltd.

Tazmo Co., Ltd.

Roland DG Corp.

Why is Sodick Co., Ltd. ?

Poor Management Efficiency with a low ROE of 4.99%

The company has been able to generate a Return on Equity (avg) of 4.99% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 15.19% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 4.99% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 7.05% and Operating profit at 15.19% over the last 5 years

With a growth in Net Profit of 107.09%, the company declared Very Positive results in Mar 26

INTEREST COVERAGE RATIO(Q) Highest at 2,520.56
PRE-TAX PROFIT(Q) At JPY 2,570 MM has Grown at 137.08%
RAW MATERIAL COST(Y) Fallen by -4.1% (YoY)

With ROE of 6.39%, it has a fair valuation with a 1.24 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 73.78%, its profits have risen by 24.1% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sodick Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Sodick Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Sodick Co., Ltd.

73.78%

2.83

48.94%

Japan Nikkei 225

60.75%

2.10

28.98%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.05%

EBIT Growth (5y)

15.19%

EBIT to Interest (avg)

10.57

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

0.62

Tax Ratio

24.29%

Dividend Payout Ratio

32.52%

Pledged Shares

Institutional Holding

0.13%

ROCE (avg)

6.06%

ROE (avg)

4.99%

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

1.24

EV to EBIT

21.03

EV to EBITDA

11.77

EV to Capital Employed

1.29

EV to Sales

1.19

PEG Ratio

0.81

Dividend Yield

ROCE (Latest)

6.13%

ROE (Latest)

6.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

14What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 2,520.56

PRE-TAX PROFIT(Q)

At JPY 2,570 MM has Grown at 137.08%

RAW MATERIAL COST(Y)

Fallen by -4.1% (YoY

CASH AND EQV(HY)

Highest at JPY 101,788 MM

DEBT-EQUITY RATIO (HY)

Lowest at -16.39 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.67 times

OPERATING PROFIT(Q)

Highest at JPY 2,697 MM

OPERATING PROFIT MARGIN(Q)

Highest at 12.47 %

NET PROFIT(Q)

At JPY 1,958.52 MM has Grown at 103.81%

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Sodick Co., Ltd.

Interest Coverage Ratio

Highest at 2,520.56

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At JPY 2,570 MM has Grown at 137.08%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Operating Profit

Highest at JPY 2,697 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 12.47 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

At JPY 1,958.52 MM has Grown at 103.81%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 101,788 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -16.39 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.67 times

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 -4.1% (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