Why is Sotoh Co., Ltd. ?
1
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
2
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
3
With a fall in Net Sales of -3.42%, the company declared Very Negative results in Dec 25
- The company has declared negative results for the last 2 consecutive quarters
- INVENTORY TURNOVER RATIO(HY) Lowest at 6.02 times
- NET PROFIT(Q) At JPY 24.74 MM has Fallen at -47.82%
- DEBT-EQUITY RATIO (HY) Highest at -3.52 %
4
Underperformed the market in the last 1 year
- The stock has generated a return of 10.04% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%
How much should you sell?
- 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 Garments & Apparels)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Sotoh Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sotoh Co., Ltd.
10.04%
0.60
16.20%
Japan Nikkei 225
36.73%
1.30
28.24%
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)
0
Net Debt to Equity (avg)
-0.08
Sales to Capital Employed (avg)
0.75
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
123.91%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.61%
ROE (avg)
4.20%
Valuation Key Factors 
Factor
Value
P/E Ratio
21
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
NA
Dividend Yield
0.07%
ROCE (Latest)
-1.09%
ROE (Latest)
3.05%
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
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Movement
2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -27.42% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 5.64 times
-24What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 6.02 times
NET PROFIT(Q)
At JPY 24.74 MM has Fallen at -47.82%
DEBT-EQUITY RATIO
(HY)
Highest at -3.52 %
INTEREST(Q)
Highest at JPY 2.73 MM
PRE-TAX PROFIT(Q)
At JPY 34.97 MM has Fallen at -31.21%
Here's what is working for Sotoh Co., Ltd.
Debtors Turnover Ratio
Highest at 5.64 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -27.42% (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 212.14 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Sotoh Co., Ltd.
Interest
At JPY 2.73 MM has Grown at 57.18%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Profit
At JPY 24.74 MM has Fallen at -47.82%
over average net sales of the previous four periods of JPY 47.42 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Inventory Turnover Ratio
Lowest at 6.02 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
Interest
Highest at JPY 2.73 MM
in the last five periods and Increased by 57.18% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Pre-Tax Profit
At JPY 34.97 MM has Fallen at -31.21%
over average net sales of the previous four periods of JPY 50.83 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Debt-Equity Ratio
Highest at -3.52 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Non Operating Income
Highest at JPY 3.53 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






