ScoreWhy is SONOCOM Co., Ltd. ?
1
Poor Management Efficiency with a low ROE of 2.59%
- The company has been able to generate a Return on Equity (avg) of 2.59% signifying low profitability per unit of shareholders funds
2
Company has very low debt and has enough cash to service the debt requirements
3
Poor long term growth as Net Sales has grown by an annual rate of 3.48% and Operating profit at -1.46% over the last 5 years
4
With a growth in Net Profit of 10.79%, the company declared Very Positive results in Dec 25
- ROCE(HY) Highest at 2.86%
- OPERATING PROFIT(Q) Highest at JPY 132.91 MM
- RAW MATERIAL COST(Y) Fallen by -23.15% (YoY)
5
With ROE of 2.46%, it has a expensive valuation with a 0.47 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 18.85%, its profits have fallen by -9.1%
6
Underperformed the market in the last 1 year
- The stock has generated a return of 18.85% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to SONOCOM 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 SONOCOM Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
SONOCOM Co., Ltd.
18.85%
0.69
37.98%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.48%
EBIT Growth (5y)
-1.46%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.46
Sales to Capital Employed (avg)
0.26
Tax Ratio
35.90%
Dividend Payout Ratio
20.50%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.97%
ROE (avg)
2.59%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
0.47
EV to EBIT
0.78
EV to EBITDA
0.43
EV to Capital Employed
0.03
EV to Sales
0.06
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
3.83%
ROE (Latest)
2.46%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
ROCE(HY)
Highest at 2.86%
OPERATING PROFIT(Q)
Highest at JPY 132.91 MM
RAW MATERIAL COST(Y)
Fallen by -23.15% (YoY
NET SALES(Q)
Highest at JPY 676.16 MM
PRE-TAX PROFIT(Q)
Highest at JPY 131.17 MM
NET PROFIT(Q)
Highest at JPY 86.45 MM
EPS(Q)
Highest at JPY 23.8
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for SONOCOM Co., Ltd.
Operating Profit
Highest at JPY 132.91 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (JPY MM)
Net Sales
Highest at JPY 676.16 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Pre-Tax Profit
Highest at JPY 131.17 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 86.45 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 23.8
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Raw Material Cost
Fallen by -23.15% (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
Depreciation
Highest at JPY 43.45 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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