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.

Shionogi & Co., Ltd.

Kyowa Kirin Co., Ltd.

Suzuken Co., Ltd.

Tsumura & Co.

Santen Pharmaceutical Co., Ltd.

Nippon Shinyaku Co., Ltd.

Hisamitsu Pharmaceutical Co., Inc.

Kobayashi Pharmaceutical Co., Ltd.

Eisai 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 Negative results for the last 4 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 2,319.63
DEBT-EQUITY RATIO (HY) Highest at 16.01 %
INVENTORY TURNOVER RATIO(HY) Lowest at 0.68 times

With ROE of 10.08%, it has a very attractive valuation with a 0.97 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 10.10%, its profits have risen by 8.1% ; the PEG ratio of the company is 1.2
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 10.10% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

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.

10.1%

521.42

23.56%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.24%

EBIT Growth (5y)

12.53%

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

0.97

EV to EBIT

9.88

EV to EBITDA

7.41

EV to Capital Employed

0.97

EV to Sales

1.91

PEG Ratio

1.19

Dividend Yield

ROCE (Latest)

9.86%

ROE (Latest)

10.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.65% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 2.76 times

DIVIDEND PER SHARE(HY)

Highest at JPY 2.76

-18What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 2,319.63

DEBT-EQUITY RATIO (HY)

Highest at 16.01 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.68 times

INTEREST(Q)

Highest at JPY 433 MM

OPERATING PROFIT(Q)

Lowest at JPY 10,044 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 21.17 %

Here's what is working for Tsumura & Co.

Debtors Turnover Ratio

Highest at 2.76 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at JPY 2.76

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by 0.65% (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

Depreciation

Highest at JPY 3,686 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 2,319.63 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 433 MM has Grown at 58.61%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 433 MM

in the last five periods and Increased by 58.61% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 10,044 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 21.17 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 16.01 %

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 0.68 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio