Synchro Food Co., Ltd. (3963) 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

FreeBit Co., Ltd.

ITmedia, Inc.

Creal, Inc.

Synchro Food Co., Ltd.

OpenWork, Inc.

Atrae, Inc.

GENOVA, Inc. (Japan)

Lifull Co., Ltd.

Enechange Ltd.

Gurunavi, Inc.

MEDIA DO Co., Ltd.

Why is Synchro Food Co., Ltd. ?

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(Q) At JPY 42.99 MM has Fallen at -65%
ROCE(HY) Lowest at 5.35%
RAW MATERIAL COST(Y) Grown by 30.73% (YoY)

With ROE of 10.37%, it has a very attractive valuation with a 1.76 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 -40.33%, its profits have fallen by -33.8%

Below par performance in long term as well as near term

Along with generating -40.33% 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 Synchro Food Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Synchro Food Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Synchro Food Co., Ltd.

-40.33%

-0.76

40.97%

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)

28.11%

EBIT Growth (5y)

89.12%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.37

Net Debt to Equity (avg)

-0.94

Sales to Capital Employed (avg)

0.76

Tax Ratio

56.06%

Dividend Payout Ratio

155.93%

Pledged Shares

Institutional Holding

ROCE (avg)

468.64%

ROE (avg)

12.31%

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

1.76

EV to EBIT

11.69

EV to EBITDA

9.38

EV to Capital Employed

1.72

EV to Sales

1.85

PEG Ratio

Dividend Yield

ROCE (Latest)

14.71%

ROE (Latest)

10.37%

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 Bullish

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

16What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 947.99%

INVENTORY TURNOVER RATIO(HY)

Highest at 173.84 times

DEBTORS TURNOVER RATIO(HY)

Highest at 27.14 times

NET SALES(Q)

Highest at JPY 1,923.05 MM

OPERATING PROFIT(Q)

Highest at JPY 319.16 MM

-22What is not working for the Company

NET PROFIT(Q)

At JPY 42.99 MM has Fallen at -65%

ROCE(HY)

Lowest at 5.35%

RAW MATERIAL COST(Y)

Grown by 30.73% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 37.1 %

INTEREST(Q)

Highest at JPY 12.95 MM

Here's what is working for Synchro Food Co., Ltd.

Net Sales

At JPY 1,923.05 MM has Grown at 65.5%

over average net sales of the previous four periods of JPY 1,161.95 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (JPY MM)

Net Sales

Highest at JPY 1,923.05 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 319.16 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Inventory Turnover Ratio

Highest at 173.84 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 27.14 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 947.99%

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 Synchro Food Co., Ltd.

Net Profit

At JPY 42.99 MM has Fallen at -65%

over average net sales of the previous four periods of JPY 122.83 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 12.95 MM has Grown at 11.43%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 12.95 MM

in the last five periods and Increased by 11.43% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 37.1 %

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

Raw Material Cost

Grown by 30.73% (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