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
Positive results in Jun 25
- NET SALES(9M) At JPY 1,931.34 MM has Grown at 19.81%
- RAW MATERIAL COST(Y) Fallen by -2.62% (YoY)
- NET PROFIT(9M) Higher at JPY 166.9 MM
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 13.87%, its profits have fallen by -9.1%
6
Underperformed the market in the last 1 year
- The stock has generated a return of 13.87% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%
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.
13.87%
0.22
21.51%
Japan Nikkei 225
28.54%
1.11
25.75%
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
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
NET SALES(9M)
At JPY 1,931.34 MM has Grown at 19.81%
RAW MATERIAL COST(Y)
Fallen by -2.62% (YoY
NET PROFIT(9M)
Higher at JPY 166.9 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 3.29%
OPERATING PROFIT(Q)
Highest at JPY 106.41 MM
OPERATING PROFIT MARGIN(Q)
Highest at 16.53 %
-1What is not working for the Company
CASH AND EQV(HY)
Lowest at JPY 8,188.88 MM
Here's what is working for SONOCOM Co., Ltd.
Net Sales
At JPY 1,931.34 MM has Grown at 19.81%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Profit
At JPY 166.9 MM has Grown at 67.82%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Operating Profit
Highest at JPY 106.41 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 16.53 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Debtors Turnover Ratio
Highest at 3.29%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Net Profit
Higher at JPY 166.9 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (JPY MM)
Raw Material Cost
Fallen by -2.62% (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 SONOCOM Co., Ltd.
Cash and Eqv
Lowest at JPY 8,188.88 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
