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

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Tanaka Seimitsu Kogyo Co., Ltd.

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Yasunaga Corp.

Why is Tanaka Seimitsu Kogyo Co., Ltd. ?

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Operating profit has grown by an annual rate 59.81%

The company declared very negative results in Mar'25 after flat results in Dec'24

INTEREST COVERAGE RATIO(Q) Lowest at 5,698.55
ROCE(HY) Lowest at 6.73%
RAW MATERIAL COST(Y) Grown by 13.31% (YoY)

With ROE of 10.04%, it has a very attractive valuation with a 0.42 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 3.98%, its profits have fallen by -22.1%

Underperformed the market in the last 1 year

The stock has generated a return of 3.98% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

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.

3.98%

0.16

29.45%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.81%

EBIT Growth (5y)

59.81%

EBIT to Interest (avg)

43.50

Debt to EBITDA (avg)

0.29

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

1.52

Tax Ratio

19.47%

Dividend Payout Ratio

17.27%

Pledged Shares

Institutional Holding

ROCE (avg)

11.18%

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

0.42

EV to EBIT

1.76

EV to EBITDA

0.91

EV to Capital Employed

0.25

EV to Sales

0.12

PEG Ratio

Dividend Yield

ROCE (Latest)

14.46%

ROE (Latest)

10.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

2What is working for the Company

CASH AND EQV(HY)

Highest at JPY 20,400.66 MM

NET SALES(Q)

Highest at JPY 11,241.48 MM

-19What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 5,698.55

ROCE(HY)

Lowest at 6.73%

RAW MATERIAL COST(Y)

Grown by 13.31% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -14.28 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.6 times

INTEREST(Q)

Highest at JPY 26.13 MM

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

Net Sales

Highest at JPY 11,241.48 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 20,400.66 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 717.47 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 Tanaka Seimitsu Kogyo Co., Ltd.

Interest Coverage Ratio

Lowest at 5,698.55 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At JPY 26.13 MM has Grown at 91.47%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 26.13 MM

in the last five periods and Increased by 91.47% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -14.28 %

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

Inventory Turnover Ratio

Lowest at 4.6 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 13.31% (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