Sokensha Co., Ltd. (7413) 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

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Sokensha Co., Ltd.

FRUTA FRUTA, Inc.

Seihyo Co., Ltd.

Asahimatsu Foods Co., Ltd.

Why is Sokensha Co., Ltd. ?

Poor Management Efficiency with a low ROE of 2.71%

The company has been able to generate a Return on Equity (avg) of 2.71% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 7.68

Poor long term growth as Net Sales has grown by an annual rate of 0.38% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 7.68
The company has been able to generate a Return on Equity (avg) of 2.71% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 0.38% over the last 5 years

With a fall in Net Sales of -2.58%, the company declared Very Negative results in Jun 26

The company has declared negative results for the last 4 consecutive quarters
INTEREST(HY) At JPY 3.77 MM has Grown at 43.12%
PRE-TAX PROFIT(Q) At JPY -14.49 MM has Fallen at -903.94%
NET PROFIT(Q) At JPY -15.01 MM has Fallen at -1,194.32%

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 FMCG)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sokensha Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sokensha Co., Ltd.

9.37%

1.15

24.78%

Japan Nikkei 225

43.52%

1.48

29.43%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.38%

EBIT Growth (5y)

-15.53%

EBIT to Interest (avg)

6.51

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.37

Sales to Capital Employed (avg)

2.41

Tax Ratio

54.76%

Dividend Payout Ratio

82.32%

Pledged Shares

Institutional Holding

ROCE (avg)

4.84%

ROE (avg)

2.71%

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

1.48

EV to EBIT

47.50

EV to EBITDA

23.52

EV to Capital Employed

1.76

EV to Sales

0.28

PEG Ratio

0.62

Dividend Yield

ROCE (Latest)

3.70%

ROE (Latest)

3.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly 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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.92% (YoY

NET PROFIT(9M)

Higher at JPY 51.34 MM

CASH AND EQV(HY)

Highest at JPY 2,747.68 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 7.54 times

-24What is not working for the Company

INTEREST(HY)

At JPY 3.77 MM has Grown at 43.12%

PRE-TAX PROFIT(Q)

At JPY -14.49 MM has Fallen at -903.94%

NET PROFIT(Q)

At JPY -15.01 MM has Fallen at -1,194.32%

ROCE(HY)

Lowest at 0.37%

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.56 times

DEBT-EQUITY RATIO (HY)

Highest at -32.14 %

OPERATING PROFIT(Q)

Lowest at JPY -8.65 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.75 %

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

Cash and Eqv

Highest at JPY 2,747.68 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 7.54 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 -0.92% (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 Sokensha Co., Ltd.

Interest

At JPY 3.77 MM has Grown at 43.12%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY -14.49 MM has Fallen at -903.94%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -15.01 MM has Fallen at -1,194.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 9.56 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit

Lowest at JPY -8.65 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -0.75 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -32.14 %

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

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