Suminoe Textile Co. Ltd. (3501) 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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Suminoe Textile Co. Ltd.

Why is Suminoe Textile Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 4.14%

The company has been able to generate a Return on Capital Employed (avg) of 4.14% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 6.28% and Operating profit at 24.59% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.44% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.28% and Operating profit at 24.59% over the last 5 years

With a fall in Operating Profit of -4.68%, the company declared Very Negative results in Feb 26

INTEREST(HY) At JPY 214 MM has Grown at 25.15%
RAW MATERIAL COST(Y) Grown by 5.26% (YoY)
PRE-TAX PROFIT(Q) Lowest at JPY 451 MM

Real-Time Research Report

Verdict Report

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 Furniture, Home Furnishing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Suminoe Textile Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Suminoe Textile Co. Ltd.

4.28%

-0.39

19.35%

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)

6.28%

EBIT Growth (5y)

24.59%

EBIT to Interest (avg)

5.28

Debt to EBITDA (avg)

4.23

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

1.96

Tax Ratio

56.46%

Dividend Payout Ratio

79.81%

Pledged Shares

Institutional Holding

ROCE (avg)

4.21%

ROE (avg)

4.44%

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

0.48

EV to EBIT

9.97

EV to EBITDA

6.93

EV to Capital Employed

0.62

EV to Sales

0.26

PEG Ratio

Dividend Yield

ROCE (Latest)

6.25%

ROE (Latest)

4.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 4.97 times

DEBTORS TURNOVER RATIO(HY)

Highest at 4.51 times

-25What is not working for the Company

INTEREST(HY)

At JPY 214 MM has Grown at 25.15%

RAW MATERIAL COST(Y)

Grown by 5.26% (YoY

PRE-TAX PROFIT(Q)

Lowest at JPY 451 MM

NET PROFIT(Q)

Lowest at JPY -117 MM

EPS(Q)

Lowest at JPY -8.74

Here's what is working for Suminoe Textile Co. Ltd.

Inventory Turnover Ratio

Highest at 4.97 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 4.51 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

At JPY 606 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Suminoe Textile Co. Ltd.

Interest

At JPY 214 MM has Grown at 25.15%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY -117 MM has Fallen at -160.58%

over average net sales of the previous four periods of JPY 193.12 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 451 MM has Fallen at -48.78%

over average net sales of the previous four periods of JPY 880.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 451 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -117 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -8.74

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 5.26% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales