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Sotetsu Holdings, Inc.

  • Market Cap: Small Cap
  • Industry: Transport Services
  • ISIN: JP3316400005
JPY
2,687.50
-18.5 (-0.68%)

May 08

TKS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
AZ-COM Maruwa Holdings, Inc.
Central Japan Railway Co.
Kamigumi Co., Ltd.
Japan Airport Terminal Co., Ltd.
Sankyu, Inc.
Hankyu Hanshin Holdings, Inc.
Nankai Electric Railway Co., Ltd.
Tokyu Corp.
Kintetsu Group Holdings Co., Ltd.
Nagoya Railroad Co., Ltd.
Sotetsu Holdings, Inc.

Why is Sotetsu Holdings, Inc. ?

1
High Debt company with Weak Long Term Fundamental Strength
  • Poor long term growth as Net Sales has grown by an annual rate of 4.97% and Operating profit at 118.29% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 6.19% signifying low profitability per unit of shareholders funds
2
The company declared very negative results in Mar'25 after flat results in Dec'24
  • INTEREST(HY) At JPY 2,091 MM has Grown at 25.43%
  • INVENTORY TURNOVER RATIO(HY) Lowest at 2.36 times
  • DEBTORS TURNOVER RATIO(HY) Lowest at 18.98 times
3
With ROCE of 5.92%, it has a very expensive valuation with a 1.15 Enterprise value to Capital Employed
  • 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 22.55%, its profits have fallen by -4.1%
  • At the current price, the company has a high dividend yield of 0
4
Underperformed the market in the last 1 year
  • The stock has generated a return of 22.55% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 70.84%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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 Transport Services)

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

Is Sotetsu Holdings, Inc. for you?

Low Risk, Low Return

Absolute
Risk Adjusted
Volatility
Sotetsu Holdings, Inc.
22.55%
0.62
16.59%
Japan Nikkei 225
70.84%
2.78
25.51%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
4.97%
EBIT Growth (5y)
118.29%
EBIT to Interest (avg)
5.37
Debt to EBITDA (avg)
10.62
Net Debt to Equity (avg)
2.12
Sales to Capital Employed (avg)
0.49
Tax Ratio
26.62%
Dividend Payout Ratio
28.40%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.18%
ROE (avg)
6.19%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
1.46
EV to EBIT
19.38
EV to EBITDA
11.32
EV to Capital Employed
1.15
EV to Sales
2.34
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
5.92%
ROE (Latest)
12.90%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company
RAW MATERIAL COST(Y)

Fallen by 0.16% (YoY

NET SALES(Q)

Highest at JPY 76,933 MM

OPERATING PROFIT(Q)

Highest at JPY 17,715 MM

-10What is not working for the Company
INTEREST(HY)

At JPY 2,091 MM has Grown at 25.43%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.36 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 18.98 times

Here's what is working for Sotetsu Holdings, Inc.

Net Sales
Highest at JPY 76,933 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit
Highest at JPY 17,715 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Raw Material Cost
Fallen by 0.16% (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 Sotetsu Holdings, Inc.

Interest
At JPY 2,091 MM has Grown at 25.43%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio
Lowest at 2.36 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio
Lowest at 18.98 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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