Sumitomo Densetsu Co. Ltd. (1949) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Raito Kogyo Co., Ltd.

Okumura Corp.

Kumagai Gumi Co., Ltd.

CHUDENKO CORP.

Sumitomo Densetsu Co. Ltd.

Nippon Densetsu Kogyo Co., Ltd.

Toyo Construction Co., Ltd.

Totetsu Kogyo Co., Ltd.

Yokogawa Bridge Holdings Corp.

Japan Elevator Service Holdings Co., Ltd.

Hitachi Zosen Corp.

Why is Sumitomo Densetsu Co. Ltd. ?

High Management Efficiency with a high ROE of 10.52%

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

Poor long term growth as Net Sales has grown by an annual rate of 3.33% and Operating profit at 5.66% over the last 5 years

Negative results in Jun 25

INTEREST(9M) At JPY 30 MM has Grown at 36.36%
INTEREST COVERAGE RATIO(Q) Lowest at 25,090
DEBT-EQUITY RATIO (HY) Highest at -48.23 %

With ROE of 11.57%, it has a very attractive valuation with a 2.01 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 103.34%, its profits have risen by 27.7% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 0

Market Beating performance in long term as well as near term

Along with generating 103.34% returns in the last 1 year, the stock has outperformed 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 Sumitomo Densetsu Co. Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

No Data Found

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.33%

EBIT Growth (5y)

5.66%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.55

Sales to Capital Employed (avg)

1.77

Tax Ratio

30.67%

Dividend Payout Ratio

40.16%

Pledged Shares

Institutional Holding

0.09%

ROCE (avg)

30.41%

ROE (avg)

10.52%

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

2.01

EV to EBIT

9.29

EV to EBITDA

8.65

EV to Capital Employed

3.25

EV to Sales

0.82

PEG Ratio

0.63

Dividend Yield

0.01%

ROCE (Latest)

34.94%

ROE (Latest)

11.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

No Trend

OBV

Mildly Bullish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -8.71% (YoY

CASH AND EQV(HY)

Highest at JPY 121,576 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.37%

-11What is not working for the Company

INTEREST(9M)

At JPY 30 MM has Grown at 36.36%

INTEREST COVERAGE RATIO(Q)

Lowest at 25,090

DEBT-EQUITY RATIO (HY)

Highest at -48.23 %

Here's what is working for Sumitomo Densetsu Co. Ltd.

Cash and Eqv

Highest at JPY 121,576 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 3.37%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -8.71% (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 Sumitomo Densetsu Co. Ltd.

Interest

At JPY 21 MM has Grown at 50%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 25,090

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -48.23 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income

Highest at JPY 0.16 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income