Toyo Seikan Group Holdings Ltd. (5901) 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

Keiwa, Inc.

Toyo Seikan Group Holdings Ltd.

Kohsoku Corp.

SHIMOJIMA Co., Ltd.

Oji Holdings Corp.

The Pack Corp.

Tomoku Co., Ltd.

Asahi Printing Co., Ltd.

W-SCOPE Corp.

Okamoto Industries, Inc.

Hokkan Holdings Ltd.

Why is Toyo Seikan Group Holdings Ltd. ?

Poor Management Efficiency with a low ROCE of 3.91%

The company has been able to generate a Return on Capital Employed (avg) of 3.91% signifying low profitability per unit of total capital (equity and debt)

Weak Long Term Fundamental Strength with a 11.77% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 4.39% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 11.77% of over the last 5 years

The company has declared Positive results for the last 5 consecutive quarters

ROCE(HY) Highest at 7.91%
INTEREST COVERAGE RATIO(Q) Highest at 3,759.47
RAW MATERIAL COST(Y) Fallen by -5.68% (YoY)

With ROCE of 5.74%, it has a very attractive valuation with a 0.93 Enterprise value to Capital Employed

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 29.85%, its profits have risen by 69.8% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Toyo Seikan Group Holdings Ltd. should be less than 10%
Overall Portfolio exposure to Packaging should be less than 30%

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

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

Is Toyo Seikan Group Holdings Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Toyo Seikan Group Holdings Ltd.

29.22%

2.19

32.48%

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)

4.68%

EBIT Growth (5y)

11.77%

EBIT to Interest (avg)

16.00

Debt to EBITDA (avg)

0.89

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

1.07

Tax Ratio

26.65%

Dividend Payout Ratio

36.50%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

4.41%

ROE (avg)

4.39%

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

0.92

EV to EBIT

16.21

EV to EBITDA

7.22

EV to Capital Employed

0.93

EV to Sales

0.76

PEG Ratio

0.12

Dividend Yield

ROCE (Latest)

5.74%

ROE (Latest)

8.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

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

11What is working for the Company

ROCE(HY)

Highest at 7.91%

INTEREST COVERAGE RATIO(Q)

Highest at 3,759.47

RAW MATERIAL COST(Y)

Fallen by -5.68% (YoY

CASH AND EQV(HY)

Highest at JPY 248,716 MM

DEBT-EQUITY RATIO (HY)

Lowest at 11.49 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.75 times

NET SALES(Q)

Highest at JPY 267,626 MM

OPERATING PROFIT(Q)

Highest at JPY 33,948 MM

OPERATING PROFIT MARGIN(Q)

Highest at 12.68 %

-1What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.06 times

Here's what is working for Toyo Seikan Group Holdings Ltd.

Interest Coverage Ratio

Highest at 3,759.47

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at JPY 267,626 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 33,948 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 12.68 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at JPY 248,716 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 11.49 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.75 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 -5.68% (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 Toyo Seikan Group Holdings Ltd.

Inventory Turnover Ratio

Lowest at 4.06 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio