SUNCORP (6736) 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

ONE CAREER, Inc.

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Dentsu Soken, Inc.

SAKURA Internet, Inc.

JIG-SAW, Inc.

SUNCORP

JMDC, Inc.

OUTSOURCING, Inc.

Why is SUNCORP ?

Poor Management Efficiency with a low ROE of 4.77%

The company has been able to generate a Return on Equity (avg) of 4.77% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 3.70

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 3.70
The company has been able to generate a Return on Capital Employed (avg) of 0.66% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Operating profit has grown by an annual rate -26.26% of over the last 5 years

Flat results in Mar 26

NET SALES(9M) At JPY 7,322.04 MM has Grown at -13.66%
DEBT-EQUITY RATIO (HY) Highest at -0.69 %
CASH AND EQV(HY) Lowest at JPY 6,099.46 MM

With ROE of 9.21%, it has a fair valuation with a 4.86 Price to Book Value

Over the past year, while the stock has generated a return of 79.20%, its profits have risen by 487.2% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SUNCORP should be less than 10%
Overall Portfolio exposure to Commercial Services & Supplies should be less than 30%

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

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

Is SUNCORP for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

SUNCORP

79.2%

2.48

58.56%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-17.22%

EBIT Growth (5y)

-26.26%

EBIT to Interest (avg)

2.85

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

0.24

Tax Ratio

2.74%

Dividend Payout Ratio

11.32%

Pledged Shares

Institutional Holding

ROCE (avg)

0.50%

ROE (avg)

4.77%

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

4.86

EV to EBIT

6334.86

EV to EBITDA

616.20

EV to Capital Employed

4.86

EV to Sales

21.20

PEG Ratio

0.11

Dividend Yield

ROCE (Latest)

0.08%

ROE (Latest)

9.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

13What is working for the Company

NET PROFIT(HY)

At JPY 2,790.53 MM has Grown at 368.49%

RAW MATERIAL COST(Y)

Fallen by -22.06% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1.97 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.53 times

PRE-TAX PROFIT(Q)

At JPY 1,635.59 MM has Grown at 55.82%

-17What is not working for the Company

NET SALES(9M)

At JPY 7,322.04 MM has Grown at -13.66%

DEBT-EQUITY RATIO (HY)

Highest at -0.69 %

CASH AND EQV(HY)

Lowest at JPY 6,099.46 MM

INTEREST(Q)

Highest at JPY 10.13 MM

Here's what is working for SUNCORP

Net Profit

At JPY 2,790.53 MM has Grown at 368.49%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 1,635.59 MM has Grown at 55.82%

over average net sales of the previous four periods of JPY 1,049.68 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Inventory Turnover Ratio

Highest at 1.97 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 5.53 times

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 -22.06% (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 SUNCORP

Net Sales

At JPY 7,322.04 MM has Grown at -13.66%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest

At JPY 10.13 MM has Grown at 11.74%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -0.69 % and Grown

In each half year 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

Interest

Highest at JPY 10.13 MM

in the last five periods and Increased by 11.74% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 6,099.46 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents