Tsumura & Co. (4540) 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

Ono Pharmaceutical Co., Ltd.

Kyowa Kirin Co., Ltd.

Shionogi & Co., Ltd.

Tsumura & Co.

Suzuken Co., Ltd.

Nippon Shinyaku Co., Ltd.

Eisai Co., Ltd.

Santen Pharmaceutical Co., Ltd.

Hisamitsu Pharmaceutical Co., Inc.

Kobayashi Pharmaceutical Co., Ltd.

Taisho Pharmaceutical Holdings Co., Ltd.

Why is Tsumura & Co. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 77.56

Low Debt Company with Strong Long Term Fundamental Strength

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

ROCE(HY) Highest at 9.72%
NET SALES(Q) Highest at JPY 55,279 MM
OPERATING PROFIT(Q) Highest at JPY 15,188 MM

With ROE of 11.50%, it has a very attractive valuation with a 0.85 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 -14.12%, its profits have risen by 91.4% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -14.12% 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 Tsumura & Co. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

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

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

Is Tsumura & Co. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Tsumura & Co.

-14.12%

435.64

28.71%

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)

8.00%

EBIT Growth (5y)

16.28%

EBIT to Interest (avg)

77.56

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

0.45

Tax Ratio

24.22%

Dividend Payout Ratio

31.84%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

9.80%

ROE (avg)

8.00%

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

0.85

EV to EBIT

6.31

EV to EBITDA

4.94

EV to Capital Employed

0.85

EV to Sales

1.40

PEG Ratio

0.08

Dividend Yield

0.01%

ROCE (Latest)

13.48%

ROE (Latest)

11.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

7What is working for the Company

ROCE(HY)

Highest at 9.72%

NET SALES(Q)

Highest at JPY 55,279 MM

OPERATING PROFIT(Q)

Highest at JPY 15,188 MM

PRE-TAX PROFIT(Q)

Highest at JPY 15,376 MM

NET PROFIT(Q)

Highest at JPY 10,673 MM

EPS(Q)

Highest at JPY 143.19

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 5,563.37

RAW MATERIAL COST(Y)

Grown by 6.61% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 21.59 %

INTEREST(Q)

Highest at JPY 273 MM

Here's what is working for Tsumura & Co.

Net Sales

Highest at JPY 55,279 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 15,188 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 15,376 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 10,673 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 143.19

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Depreciation

Highest at JPY 3,445 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 Tsumura & Co.

Interest Coverage Ratio

Lowest at 5,563.37 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 273 MM has Grown at 37.19%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 273 MM

in the last five periods and Increased by 37.19% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 21.59 %

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 6.61% (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