Soken Chemical & Engineering Co., Ltd. (4972) 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

JCU Corp.

Soken Chemical & Engineering Co., Ltd.

Yushiro Chemical Industry Co., Ltd.

Daiichi Kigenso Kagaku Kogyo Co., Ltd.

KH Neochem Co., Ltd.

Nippon Fine Chemical Co., Ltd.

Taki Chemical Co., Ltd.

Nippon Chemical Industrial Co., Ltd.

Hodogaya Chemical Co., Ltd.

Seiko PMC Corp.

Moriroku Holdings Co., Ltd.

Why is Soken Chemical & Engineering Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 55.02

Low Debt Company with Strong Long Term Fundamental Strength

Positive results in Dec 25

OPERATING PROFIT MARGIN(Q) Highest at 18.66 %
RAW MATERIAL COST(Y) Fallen by -8.73% (YoY)
CASH AND EQV(HY) Highest at JPY 31,046.8 MM

With ROE of 11.64%, it has a very attractive valuation with a 0.65 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 -2.55%, its profits have risen by 67.1%

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 36.73% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -2.55% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Soken Chemical & Engineering Co., Ltd. should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

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

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

Is Soken Chemical & Engineering Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Soken Chemical & Engineering Co., Ltd.

-2.55%

2.31

60.75%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.66%

EBIT Growth (5y)

25.55%

EBIT to Interest (avg)

55.02

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

1.11

Tax Ratio

28.94%

Dividend Payout Ratio

23.66%

Pledged Shares

Institutional Holding

ROCE (avg)

15.61%

ROE (avg)

8.56%

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

0.65

EV to EBIT

2.06

EV to EBITDA

1.50

EV to Capital Employed

0.50

EV to Sales

0.27

PEG Ratio

Dividend Yield

ROCE (Latest)

24.20%

ROE (Latest)

11.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Bullish

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

8What is working for the Company

OPERATING PROFIT MARGIN(Q)

Highest at 18.66 %

RAW MATERIAL COST(Y)

Fallen by -8.73% (YoY

CASH AND EQV(HY)

Highest at JPY 31,046.8 MM

OPERATING PROFIT(Q)

Highest at JPY 2,261.74 MM

PRE-TAX PROFIT(Q)

Highest at JPY 1,679.64 MM

NET PROFIT(Q)

Highest at JPY 1,310.26 MM

EPS(Q)

Highest at JPY 74.1

-2What is not working for the Company

INTEREST(Q)

At JPY 28.01 MM has Grown at 41.91%

Here's what is working for Soken Chemical & Engineering Co., Ltd.

Operating Profit Margin

Highest at 18.66 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Operating Profit

Highest at JPY 2,261.74 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 1,679.64 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,310.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 74.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 31,046.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -8.73% (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 Soken Chemical & Engineering Co., Ltd.

Interest

At JPY 28.01 MM has Grown at 41.91%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)