Why is Sougou Shouken Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 4.68%
- The company has been able to generate a Return on Capital Employed (avg) of 4.68% signifying low profitability per unit of total capital (equity and debt)
2
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of -2.03% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 8.11% signifying low profitability per unit of shareholders funds
- INTEREST(HY) At JPY 23.98 MM has Grown at 33.38%
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -1.71% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods
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 Media & Entertainment)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Sougou Shouken Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sougou Shouken Co., Ltd.
-2.06%
-0.49
23.48%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality key factors
Factor
Value
Sales Growth (5y)
-2.03%
EBIT Growth (5y)
70.19%
EBIT to Interest (avg)
-15.96
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.27
Sales to Capital Employed (avg)
2.22
Tax Ratio
32.06%
Dividend Payout Ratio
21.85%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.17%
ROE (avg)
8.11%
Valuation Key Factors 
Factor
Value
P/E Ratio
7
Industry P/E
Price to Book Value
0.75
EV to EBIT
9.10
EV to EBITDA
4.55
EV to Capital Employed
0.80
EV to Sales
0.23
PEG Ratio
0.17
Dividend Yield
NA
ROCE (Latest)
8.80%
ROE (Latest)
10.64%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
8What is working for the Company
NET PROFIT(HY)
Higher at JPY 620.04 MM
ROCE(HY)
Highest at 13.85%
RAW MATERIAL COST(Y)
Fallen by -11.48% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 22.84 %
DEBTORS TURNOVER RATIO(HY)
Highest at 11.91%
-8What is not working for the Company
INTEREST(HY)
At JPY 23.98 MM has Grown at 33.38%
Here's what is working for Sougou Shouken Co., Ltd.
Net Profit
Higher at JPY 620.04 MM
than preceding 12 month period ended Apr 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (JPY MM)
Debt-Equity Ratio
Lowest at 22.84 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 11.91%
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 -11.48% (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 Sougou Shouken Co., Ltd.
Interest
At JPY 23.98 MM has Grown at 33.38%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






