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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

HENNGE KK

CAC Holdings Corp.

ExaWizards Inc.

Carta Holdings, Inc.

Medical Data Vision Co., Ltd.

Akatsuki, Inc.

eBASE Co., Ltd.

BASE, Inc. (Japan)

Chatwork 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

Flat results in Jun 25

INTEREST(Q) At JPY 12 MM has Grown at 140%
RAW MATERIAL COST(Y) Grown by 85.64% (YoY)
NET SALES(Q) Lowest at JPY 2,313 MM

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 0.98%, its profits have risen by 25.1% ; the PEG ratio of the company is 0.8

Underperformed the market in the last 1 year

The stock has generated a return of 0.98% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

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.

-1.96%

3.79

34.99%

Japan Nikkei 225

28.54%

1.14

25.81%

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)

0.51

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

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 11.02%

-33What is not working for the Company

INTEREST(Q)

At JPY 12 MM has Grown at 140%

RAW MATERIAL COST(Y)

Grown by 85.64% (YoY

NET SALES(Q)

Lowest at JPY 2,313 MM

OPERATING PROFIT(Q)

Lowest at JPY -1,680 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -72.63 %

PRE-TAX PROFIT(Q)

Lowest at JPY -1,381 MM

NET PROFIT(Q)

Lowest at JPY -1,193 MM

EPS(Q)

Lowest at JPY -80.93

Here's what is working for Akatsuki, Inc.

Debtors Turnover Ratio

Highest at 11.02%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Net Sales

At JPY 2,313 MM has Fallen at -44.01%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY -1,381 MM has Fallen at -3,552.5%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -1,193 MM has Fallen at -659.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 12 MM has Grown at 140%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 2,313 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY -1,680 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -72.63 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -1,381 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -1,193 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -80.93

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 85.64% (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