AGS Corp. (3648) 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

Flect Co., Ltd.

Japaniace Co., Ltd.

NCS&A Co., Ltd.

YE Digital Corp.

Needs Well, Inc.

AGS Corp.

pluszero, Inc.

Uluru Co., Ltd.

Scala, Inc. (Japan)

J-Stream, Inc.

LaKeel, Inc.

Why is AGS Corp. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 27.27

Low Debt Company with Strong Long Term Fundamental Strength

Flat results in Mar 26

RAW MATERIAL COST(Y) Grown by 7.64% (YoY)
DEBTORS TURNOVER RATIO(HY) Lowest at 4.86 times
OPERATING PROFIT MARGIN(Q) Lowest at 10.29 %

With ROE of 13.30%, it has a very attractive valuation with a 1.31 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 14.65%, its profits have risen by 147.5% ; the PEG ratio of the company is 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 14.65% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 88.41%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to AGS Corp. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is AGS Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

AGS Corp.

11.5%

0.14

43.26%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.85%

EBIT Growth (5y)

48.04%

EBIT to Interest (avg)

27.27

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

1.61

Tax Ratio

27.18%

Dividend Payout Ratio

29.31%

Pledged Shares

Institutional Holding

ROCE (avg)

13.56%

ROE (avg)

6.04%

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

1.31

EV to EBIT

5.59

EV to EBITDA

3.86

EV to Capital Employed

1.46

EV to Sales

0.54

PEG Ratio

0.07

Dividend Yield

ROCE (Latest)

26.10%

ROE (Latest)

13.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 2,249.35 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 25.12 times

DIVIDEND PER SHARE(HY)

Highest at JPY 4.86

-5What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 7.64% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.86 times

OPERATING PROFIT MARGIN(Q)

Lowest at 10.29 %

PRE-TAX PROFIT(Q)

Lowest at JPY 467.57 MM

Here's what is working for AGS Corp.

Operating Cash Flow

Highest at JPY 2,249.35 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Inventory Turnover Ratio

Highest at 25.12 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 4.86

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Depreciation

Highest at JPY 329.44 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 AGS Corp.

Operating Profit Margin

Lowest at 10.29 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 467.57 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Fallen at -38.36%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Debtors Turnover Ratio

Lowest at 4.86 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 7.64% (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