SOHGO SECURITY SERVICES CO., LTD. (2331) 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

BayCurrent Consulting, Inc.

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SCSK Corp.

Visional, Inc.

TKC Corp.

NTT DATA Group Corp.

SOHGO SECURITY SERVICES CO., LTD.

SECOM Co., Ltd.

Medley, Inc.

ITOCHU Techno-Solutions Corp.

AEON DELIGHT CO., LTD.

Why is SOHGO SECURITY SERVICES CO., LTD. ?

Weak Long Term Fundamental Strength with a 6.46% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 4.96% and Operating profit at 6.46% over the last 5 years

Flat results in Jun 26

INTEREST(HY) At JPY 1,398 MM has Grown at 20.73%
INTEREST COVERAGE RATIO(Q) Lowest at 2,632.18
DEBT-EQUITY RATIO (HY) Highest at -31.66 %

With ROE of 9.95%, it has a fair valuation with a 1.53 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 3.32%, its profits have risen by 26.6% ; the PEG ratio of the company is 0.6

Underperformed the market in the last 1 year

The stock has generated a return of 3.32% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SOHGO SECURITY SERVICES CO., LTD. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is SOHGO SECURITY SERVICES CO., LTD. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

SOHGO SECURITY SERVICES CO., LTD.

-100.0%

0.81

22.07%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.96%

EBIT Growth (5y)

6.46%

EBIT to Interest (avg)

19.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.39

Sales to Capital Employed (avg)

1.50

Tax Ratio

30.75%

Dividend Payout Ratio

42.64%

Pledged Shares

Institutional Holding

ROCE (avg)

20.21%

ROE (avg)

9.00%

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

1.53

EV to EBIT

8.32

EV to EBITDA

5.53

EV to Capital Employed

1.87

EV to Sales

0.68

PEG Ratio

0.58

Dividend Yield

ROCE (Latest)

22.49%

ROE (Latest)

9.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 61,347 MM

OPERATING PROFIT MARGIN(Q)

Highest at 12.5 %

RAW MATERIAL COST(Y)

Fallen by -5.21% (YoY

CASH AND EQV(HY)

Highest at JPY 319,276 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 10.01 times

-10What is not working for the Company

INTEREST(HY)

At JPY 1,398 MM has Grown at 20.73%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,632.18

DEBT-EQUITY RATIO (HY)

Highest at -31.66 %

Here's what is working for SOHGO SECURITY SERVICES CO., LTD.

Operating Profit Margin

Highest at 12.5 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Operating Cash Flow

Highest at JPY 61,347 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Cash and Eqv

Highest at JPY 319,276 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 10.01 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -5.21% (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 SOHGO SECURITY SERVICES CO., LTD.

Interest

At JPY 1,398 MM has Grown at 20.73%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,632.18

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -31.66 %

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