Sotoh Co., Ltd. (3571) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Transaction Co., Ltd.

Sumitomo Seika Chemicals Co., Ltd.

KURABO INDUSTRIES LTD.

Fujibo Holdings, Inc.

KOMATSU MATERE Co., Ltd.

HAGIHARA INDUSTRIES, Inc.

GSI Creos Corp.

Shikibo Ltd.

Sotoh Co., Ltd.

Sankyo Seiko Co., Ltd.

Unitika Ltd.

Why is Sotoh Co., Ltd. ?

Poor Management Efficiency with a low ROE of 4.20%

The company has been able to generate a Return on Equity (avg) of 4.20% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -2.19% and Operating profit at -194.63% over the last 5 years

Negative results in Jun 25

NET PROFIT(HY) At JPY 57.49 MM has Grown at -97.49%
INVENTORY TURNOVER RATIO(HY) Lowest at 6.03%
DEBTORS TURNOVER RATIO(HY) Lowest at 4.26%

With ROE of 3.05%, it has a very attractive valuation with a 0.64 Price to Book Value

Over the past year, while the stock has generated a return of 15.22%, its profits have fallen by -82.4%
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 15.22% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

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.

15.1%

0.42

17.75%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.19%

EBIT Growth (5y)

-194.63%

EBIT to Interest (avg)

-261.80

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

0.77

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

123.91%

Pledged Shares

Institutional Holding

ROCE (avg)

0.61%

ROE (avg)

4.20%

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

0.64

EV to EBIT

-56.31

EV to EBITDA

15.79

EV to Capital Employed

0.61

EV to Sales

0.82

PEG Ratio

Dividend Yield

0.07%

ROCE (Latest)

-1.09%

ROE (Latest)

3.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

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

5What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 188.68 MM has Grown at 116.98%

NET SALES(Q)

Highest at JPY 3,158.95 MM

-22What is not working for the Company

NET PROFIT(HY)

At JPY 57.49 MM has Grown at -97.49%

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.03%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.26%

INTEREST(Q)

Highest at JPY 1.7 MM

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

Net Sales

At JPY 3,158.95 MM has Grown at 25.82%

over average net sales of the previous four periods of JPY 2,510.77 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 188.68 MM has Grown at 116.98%

over average net sales of the previous four periods of JPY 86.96 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Sales

Highest at JPY 3,158.95 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Here's what is not working for Sotoh Co., Ltd.

Net Profit

At JPY 57.49 MM has Grown at -97.49%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 1.7 MM has Grown at 793.16%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 6.03% 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

Interest

Highest at JPY 1.7 MM

in the last five periods and Increased by 793.16% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 4.26%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio