Sundrug Co., Ltd. (9989) 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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Cawachi Ltd.

Why is Sundrug Co., Ltd. ?

High Management Efficiency with a high ROE of 11.53%

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

Poor long term growth as Operating profit has grown by an annual rate 3.54% of over the last 5 years

The company has declared Negative results for the last 8 consecutive quarters

INTEREST(HY) At JPY 179 MM has Grown at 115.66%
ROCE(HY) Lowest at 11.5%
INVENTORY TURNOVER RATIO(HY) Lowest at 5.93 times

With ROE of 11.22%, it has a very attractive valuation with a 1.72 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 -13.60%, its profits have risen by 3.2% ; the PEG ratio of the company is 4.9

Below par performance in long term as well as near term

Along with generating -13.60% 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 Sundrug 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 Sundrug Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Sundrug Co., Ltd.

-100.0%

656.84

17.30%

Japan Nikkei 225

75.22%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.63%

EBIT Growth (5y)

3.54%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

2.68

Tax Ratio

29.42%

Dividend Payout Ratio

49.45%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

23.70%

ROE (avg)

11.53%

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

1.72

EV to EBIT

9.93

EV to EBITDA

7.09

EV to Capital Employed

1.78

EV to Sales

0.55

PEG Ratio

4.86

Dividend Yield

ROCE (Latest)

17.93%

ROE (Latest)

11.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

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

3What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 16.87

RAW MATERIAL COST(Y)

Fallen by -11.69% (YoY

-19What is not working for the Company

ROCE(HY)

Lowest at 11.3%

DEBT-EQUITY RATIO (HY)

Highest at -7.54 %

INTEREST COVERAGE RATIO(Q)

Lowest at 12,303.2

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.99 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 16.87 times

INTEREST(Q)

Highest at JPY 125 MM

Here's what is working for Sundrug Co., Ltd.

Dividend per share

Highest at JPY 16.87 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -11.69% (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

Depreciation

Highest at JPY 5,084 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Sundrug Co., Ltd.

Interest

At JPY 125 MM has Grown at 37.36%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 12,303.2

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 -7.54 % 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 125 MM

in the last five periods and Increased by 37.36% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 5.99 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 16.87 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio