ScoreWhy is Watanabe Sato Co., Ltd. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Net Sales has grown by an annual rate of 1.86% and Operating profit at -5.44% over the last 5 years
3
The company has declared Negative results for the last 4 consecutive quarters
- INTEREST(HY) At JPY 15.97 MM has Grown at 238.73%
- CASH AND EQV(HY) Lowest at JPY 10,359.89 MM
4
With ROE of 4.20%, it has a very attractive valuation with a 0.49 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 10.94%, its profits have fallen by -22%
5
Underperformed the market in the last 1 year
- The stock has generated a return of 10.94% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Watanabe Sato Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Construction should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Watanabe Sato Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Watanabe Sato Co., Ltd.
10.04%
0.04
20.22%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.86%
EBIT Growth (5y)
-5.44%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.10
Sales to Capital Employed (avg)
1.83
Tax Ratio
32.17%
Dividend Payout Ratio
55.86%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
12.17%
ROE (avg)
6.44%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
0.49
EV to EBIT
7.56
EV to EBITDA
4.74
EV to Capital Employed
0.43
EV to Sales
0.20
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
5.68%
ROE (Latest)
4.20%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -72.69% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 20.25%
PRE-TAX PROFIT(Q)
At JPY -110.25 MM has Grown at 64.38%
NET PROFIT(Q)
At JPY -82.24 MM has Grown at 69.48%
-9What is not working for the Company
INTEREST(HY)
At JPY 15.97 MM has Grown at 238.73%
CASH AND EQV(HY)
Lowest at JPY 10,359.89 MM
Here's what is working for Watanabe Sato Co., Ltd.
Pre-Tax Profit
At JPY -110.25 MM has Grown at 64.38%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY -82.24 MM has Grown at 69.48%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Inventory Turnover Ratio
Highest at 20.25%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -72.69% (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 Watanabe Sato Co., Ltd.
Interest
At JPY 15.97 MM has Grown at 238.73%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Cash and Eqv
Lowest at JPY 10,359.89 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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