Why is Sotoh Co., Ltd. ?
1
Poor Management Efficiency with a low ROE of 4.22%
- The company has been able to generate a Return on Equity (avg) of 4.22% signifying low profitability per unit of shareholders funds
2
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -261.80
- Poor long term growth as Net Sales has grown by an annual rate of 4.99% and Operating profit at 8.85% over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -261.80
- The company has been able to generate a Return on Equity (avg) of 4.22% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 4.99% and Operating profit at 8.85% over the last 5 years
4
Positive results in Jun 26
- NET PROFIT(HY) Higher at JPY 434.57 MM
- RAW MATERIAL COST(Y) Fallen by -20.14% (YoY)
- NET SALES(Q) At JPY 3,033.02 MM has Grown at 13.22%
5
With ROE of 1.11%, it has a very attractive valuation with a 0.61 Price to Book Value
- Over the past year, while the stock has generated a return of -9.51%, its profits have fallen by -93.1%
- At the current price, the company has a high dividend yield of 0
How much should you hold?
- Overall Portfolio exposure to Sotoh Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Garments & Apparels should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Sotoh Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sotoh Co., Ltd.
-9.51%
0.04
13.35%
Japan Nikkei 225
43.52%
1.48
29.43%
Quality key factors
Factor
Value
Sales Growth (5y)
4.99%
EBIT Growth (5y)
8.85%
EBIT to Interest (avg)
-139.96
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.08
Sales to Capital Employed (avg)
0.70
Tax Ratio
30.41%
Dividend Payout Ratio
101.98%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.61%
ROE (avg)
4.22%
Valuation Key Factors 
Factor
Value
P/E Ratio
54
Industry P/E
Price to Book Value
0.61
EV to EBIT
-39.81
EV to EBITDA
16.07
EV to Capital Employed
0.59
EV to Sales
0.84
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-1.49%
ROE (Latest)
1.11%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
14What is working for the Company
NET PROFIT(HY)
Higher at JPY 434.57 MM
RAW MATERIAL COST(Y)
Fallen by -20.14% (YoY
NET SALES(Q)
At JPY 3,033.02 MM has Grown at 13.22%
EPS(Q)
Highest at JPY 26.81
-10What is not working for the Company
INTEREST(HY)
At JPY 4.6 MM has Grown at 143.51%
INVENTORY TURNOVER RATIO(HY)
Lowest at 5.27 times
Here's what is working for Sotoh Co., Ltd.
Net Profit
At JPY 434.57 MM has Grown at 655.96%
Year on Year (YoY)MOJO Watch
Net Profit trend is very positive
Net Profit (JPY MM)
Net Profit
Higher at JPY 434.57 MM
than preceding 12 month period ended Jun 2026MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (JPY MM)
Net Sales
At JPY 3,033.02 MM has Grown at 13.22%
over average net sales of the previous four periods of JPY 2,678.81 MMMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
EPS
Highest at JPY 26.81
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Raw Material Cost
Fallen by -20.14% (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 Sotoh Co., Ltd.
Interest
At JPY 4.6 MM has Grown at 143.51%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Inventory Turnover Ratio
Lowest at 5.27 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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