Akatsuki, Inc. (3932) 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

BASE, Inc. (Japan)

Medical Data Vision Co., Ltd.

CAC Holdings Corp.

Chatwork Co., Ltd.

HENNGE KK

ExaWizards Inc.

Akatsuki, Inc.

Carta Holdings, Inc.

eBASE Co., Ltd.

Value HR Co., Ltd.

Transaction Media Networks, Inc.

Why is Akatsuki, Inc. ?

High Management Efficiency with a high ROE of 10.92%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of -5.89% and Operating profit at -18.74% over the last 5 years

With a growth in Net Sales of 78.96%, the company declared Very Positive results in Dec 25

NET SALES(Q) At JPY 6,582 MM has Grown at 78.96%
PRE-TAX PROFIT(Q) At JPY 1,942 MM has Grown at 454.38%
NET PROFIT(Q) At JPY 1,359.26 MM has Grown at 272.28%

With ROE of 5.81%, it has a very attractive valuation with a 1.04 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 -5.63%, its profits have risen by 25.1% ; the PEG ratio of the company is 0.8

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 36.73% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -5.63% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Akatsuki, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is Akatsuki, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Akatsuki, Inc.

-100.0%

4.72

34.79%

Japan Nikkei 225

38.94%

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)

-5.89%

EBIT Growth (5y)

-18.74%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.54

Sales to Capital Employed (avg)

0.50

Tax Ratio

64.09%

Dividend Payout Ratio

83.22%

Pledged Shares

Institutional Holding

ROCE (avg)

47.44%

ROE (avg)

10.92%

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

1.04

EV to EBIT

5.35

EV to EBITDA

5.19

EV to Capital Employed

1.09

EV to Sales

0.89

PEG Ratio

0.81

Dividend Yield

ROCE (Latest)

20.44%

ROE (Latest)

5.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

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

24What is working for the Company

NET SALES(Q)

At JPY 6,582 MM has Grown at 78.96%

PRE-TAX PROFIT(Q)

At JPY 1,942 MM has Grown at 454.38%

NET PROFIT(Q)

At JPY 1,359.26 MM has Grown at 272.28%

ROCE(HY)

Highest at 9.06%

RAW MATERIAL COST(Y)

Fallen by -72.52% (YoY

-13What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -42.08 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

INTEREST(Q)

Highest at JPY 27 MM

Here's what is working for Akatsuki, Inc.

Net Sales

At JPY 6,582 MM has Grown at 78.96%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 1,942 MM has Grown at 454.38%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,359.26 MM has Grown at 272.28%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -72.52% (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 195 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 195 MM has Grown at 219.67%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Akatsuki, Inc.

Interest

At JPY 27 MM has Grown at 237.5%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 27 MM

in the last five periods and Increased by 237.5% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -42.08 %

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 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at JPY 0.44 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income