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

AGC, Inc. (Japan)

Cleanup Corp.

BRUNO, Inc.

TOLI Corp.

Suminoe Textile Co. Ltd.

Tachikawa Corp.

Toso Co. Ltd.

Maruhachi Holdings Co., Ltd.

Paramount Bed Holdings Co., Ltd.

Nippon Sheet Glass Co., Ltd.

Janis Ltd.

Why is Suminoe Textile Co. Ltd. ?

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 1.47% and Operating profit at 2.13% 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 4.05% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 1.47% and Operating profit at 2.13% over the last 5 years

Flat results in Nov 25

INTEREST(HY) At JPY 221 MM has Grown at 39.87%
NET PROFIT(Q) At JPY 25.8 MM has Fallen at -91.64%
PRE-TAX PROFIT(Q) At JPY 682 MM has Fallen at -27.62%

With ROCE of 5.68%, it has a risky valuation with a 0.69 Enterprise value to Capital Employed

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 11.12%, its profits have fallen by -49.5%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Suminoe Textile Co. Ltd. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

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

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

Is Suminoe Textile Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Suminoe Textile Co. Ltd.

11.12%

0.32

20.48%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.47%

EBIT Growth (5y)

2.13%

EBIT to Interest (avg)

5.63

Debt to EBITDA (avg)

3.38

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

1.96

Tax Ratio

52.11%

Dividend Payout Ratio

79.81%

Pledged Shares

Institutional Holding

ROCE (avg)

4.14%

ROE (avg)

4.05%

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

0.55

EV to EBIT

12.18

EV to EBITDA

6.58

EV to Capital Employed

0.69

EV to Sales

0.31

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

5.68%

ROE (Latest)

4.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

11What is working for the Company

NET PROFIT(HY)

At JPY 85.8 MM has Grown at 225.75%

DIVIDEND PAYOUT RATIO(Y)

Highest at 1,056.41%

INVENTORY TURNOVER RATIO(HY)

Highest at 5.08 times

DIVIDEND PER SHARE(HY)

Highest at JPY 4.22

-12What is not working for the Company

INTEREST(HY)

At JPY 221 MM has Grown at 39.87%

NET PROFIT(Q)

At JPY 25.8 MM has Fallen at -91.64%

PRE-TAX PROFIT(Q)

At JPY 682 MM has Fallen at -27.62%

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

Inventory Turnover Ratio

Highest at 5.08 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 4.22

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 1,056.41%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

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

Interest

At JPY 221 MM has Grown at 39.87%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 25.8 MM has Fallen at -91.64%

over average net sales of the previous four periods of JPY 308.51 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 682 MM has Fallen at -27.62%

over average net sales of the previous four periods of JPY 942.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)