Sugi Holdings Co., Ltd. (7649) 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

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Why is Sugi Holdings Co., Ltd. ?

Weak Long Term Fundamental Strength with a 7.42% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 7.42% of over the last 5 years

Negative results in May 26

INTEREST COVERAGE RATIO(Q) Lowest at 4,508.46
INTEREST(Q) Highest at JPY 390 MM
NET PROFIT(Q) At JPY 7,171.92 MM has Fallen at -41.28%

With ROE of 16.82%, it has a very attractive valuation with a 1.96 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 -27.90%, its profits have risen by 67% ; the PEG ratio of the company is 0.2

Below par performance in long term as well as near term

Along with generating -27.90% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sugi Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is Sugi Holdings Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sugi Holdings Co., Ltd.

-27.42%

0.43

31.07%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.88%

EBIT Growth (5y)

7.42%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

2.91

Tax Ratio

32.06%

Dividend Payout Ratio

14.08%

Pledged Shares

Institutional Holding

6.89%

ROCE (avg)

20.56%

ROE (avg)

12.12%

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

1.96

EV to EBIT

11.39

EV to EBITDA

8.05

EV to Capital Employed

2.02

EV to Sales

0.55

PEG Ratio

0.17

Dividend Yield

ROCE (Latest)

17.74%

ROE (Latest)

16.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

RAW MATERIAL COST(Y)

Fallen by -0.13% (YoY

CASH AND EQV(HY)

Highest at JPY 235,847 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 7.17 times

NET SALES(Q)

Highest at JPY 270,175 MM

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 4,508.46

INTEREST(Q)

Highest at JPY 390 MM

NET PROFIT(Q)

At JPY 7,171.92 MM has Fallen at -41.28%

EPS(Q)

Lowest at JPY 38.13

Here's what is working for Sugi Holdings Co., Ltd.

Net Sales

Highest at JPY 270,175 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 235,847 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 7.17 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -0.13% (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 Sugi Holdings Co., Ltd.

Interest

At JPY 390 MM has Grown at 26.21%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 4,508.46

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 390 MM

in the last five periods and Increased by 26.21% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 7,171.92 MM has Fallen at -41.28%

over average net sales of the previous four periods of JPY 12,214.29 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 38.13

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)