Tanaka Seimitsu Kogyo Co., Ltd. (7218) 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

Metalart Corp.

Tokyo Radiator Manufacturing Co., Ltd.

Nihon Plast Co., Ltd.

Muro Corp.

GMB Corp.

FUJI OOZX, Inc.

Tanaka Seimitsu Kogyo Co., Ltd.

NITTAN Corp.

Kasai Kogyo Co., Ltd.

Univance Corp.

Yasunaga Corp.

Why is Tanaka Seimitsu Kogyo Co., Ltd. ?

Poor Management Efficiency with a low ROE of 8.08%

The company has been able to generate a Return on Equity (avg) of 8.08% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 10.09% CAGR growth in Net Sales over the last 5 years

The company has been able to generate a Return on Equity (avg) of 8.08% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 10.09% over the last 5 years

Flat results in Jun 26

INTEREST(Q) At JPY 25.49 MM has Grown at 19.66%

With ROE of 8.17%, it has a expensive valuation with a 0.35 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 3.28%, its profits have fallen by -30.8%

Underperformed the market in the last 1 year

The stock has generated a return of 3.28% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 61.01%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tanaka Seimitsu Kogyo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Tanaka Seimitsu Kogyo Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tanaka Seimitsu Kogyo Co., Ltd.

2.79%

-0.00

32.88%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.09%

EBIT Growth (5y)

36.84%

EBIT to Interest (avg)

50.47

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

1.48

Tax Ratio

15.09%

Dividend Payout Ratio

26.01%

Pledged Shares

Institutional Holding

ROCE (avg)

13.23%

ROE (avg)

8.08%

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

0.35

EV to EBIT

2.31

EV to EBITDA

1.11

EV to Capital Employed

0.24

EV to Sales

0.13

PEG Ratio

Dividend Yield

ROCE (Latest)

10.51%

ROE (Latest)

8.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

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

15What is working for the Company

CASH AND EQV(HY)

Highest at JPY 21,113.35 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 10.85 times

NET SALES(Q)

At JPY 11,668.53 MM has Grown at 18.54%

OPERATING PROFIT(Q)

Highest at JPY 1,535.24 MM

PRE-TAX PROFIT(Q)

Highest at JPY 1,679.14 MM

NET PROFIT(Q)

Highest at JPY 1,432.02 MM

EPS(Q)

Highest at JPY 147.97

-10What is not working for the Company

INTEREST(Q)

At JPY 25.49 MM has Grown at 19.66%

Here's what is working for Tanaka Seimitsu Kogyo Co., Ltd.

Pre-Tax Profit

At JPY 1,679.14 MM has Grown at 123.45%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,432.02 MM has Grown at 190.76%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 11,668.53 MM has Grown at 18.54%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,535.24 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 1,679.14 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,432.02 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 147.97

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 21,113.35 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 10.85 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Tanaka Seimitsu Kogyo Co., Ltd.

Interest

At JPY 25.49 MM has Grown at 19.66%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)