SPK Corp. (7466) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Tokyo Sangyo Co., Ltd.

Universal Engeisha Co., Ltd.

Fujii Sangyo Corp.

Envipro Holdings, Inc.

Soda Nikka Co., Ltd.

SPK Corp.

Sugimoto & Co., Ltd.

HASHIMOTO SOGYO HOLDINGS Co., Ltd.

H-One Co., Ltd.

GL Sciences Inc.

Kyokuto Boeki Kaisha Ltd.

Why is SPK Corp. ?

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Operating profit has grown by an annual rate 14.92%

Negative results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 5,045
INVENTORY TURNOVER RATIO(HY) Lowest at 5.12 times
INTEREST(Q) Highest at JPY 20 MM

With ROE of 10.02%, it has a very attractive valuation with a 0.98 Price to Book Value

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 19.74%, its profits have risen by 30.5% ; the PEG ratio of the company is 0.3

Underperformed the market in the last 1 year

The stock has generated a return of 19.74% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.12%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SPK Corp. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is SPK Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

SPK Corp.

19.74%

-0.74

57.93%

Japan Nikkei 225

88.41%

3.12

27.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.40%

EBIT Growth (5y)

14.92%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

2.02

Tax Ratio

31.37%

Dividend Payout Ratio

24.20%

Pledged Shares

Institutional Holding

ROCE (avg)

13.61%

ROE (avg)

8.72%

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

0.98

EV to EBIT

7.37

EV to EBITDA

5.90

EV to Capital Employed

0.98

EV to Sales

0.37

PEG Ratio

0.32

Dividend Yield

ROCE (Latest)

13.34%

ROE (Latest)

10.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 5.29

CASH AND EQV(HY)

Highest at JPY 17,777 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 5.29 times

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 5,045

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.12 times

INTEREST(Q)

Highest at JPY 20 MM

OPERATING PROFIT(Q)

Lowest at JPY 1,009 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.27 %

Here's what is working for SPK Corp.

Dividend per share

Highest at JPY 5.29 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Cash and Eqv

Highest at JPY 17,777 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 5.29 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for SPK Corp.

Interest

At JPY 20 MM has Grown at 42.86%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 5,045

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 20 MM

in the last five periods and Increased by 42.86% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 1,009 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 5.27 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 5.12 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at JPY 0.12 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income