Alpha Systems, Inc. (4719) 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

SRA Holdings, Inc.

m-up holdings, Inc.

NSW, Inc. (Japan)

Tsuzuki Denki Co., Ltd.

Softcreate Holdings Corp.

Baudroie, Inc.

Smaregi, Inc.

Alpha Systems, Inc.

Core Concept Technologies, Inc.

JFE Systems, Inc.

SB Technology Corp.

Why is Alpha Systems, Inc. ?

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

Poor long term growth as Operating profit has grown by an annual rate 7.65% of over the last 5 years

Positive results in Mar 26

ROCE(HY) Highest at 8.45%
RAW MATERIAL COST(Y) Fallen by -4.61% (YoY)
NET SALES(Q) Highest at JPY 10,854.42 MM

With ROE of 7.92%, it has a very attractive valuation with a 1.11 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 -11.47%, its profits have risen by 10% ; the PEG ratio of the company is 1.4

Below par performance in long term as well as near term

Along with generating -11.47% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Alpha Systems, Inc. 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 Alpha Systems, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Alpha Systems, Inc.

-100.0%

0.40

28.14%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.68%

EBIT Growth (5y)

7.65%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.56

Sales to Capital Employed (avg)

0.89

Tax Ratio

29.28%

Dividend Payout Ratio

54.64%

Pledged Shares

Institutional Holding

ROCE (avg)

26.26%

ROE (avg)

7.12%

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

1.11

EV to EBIT

5.52

EV to EBITDA

5.22

EV to Capital Employed

1.23

EV to Sales

0.66

PEG Ratio

1.40

Dividend Yield

ROCE (Latest)

22.30%

ROE (Latest)

7.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

ROCE(HY)

Highest at 8.45%

RAW MATERIAL COST(Y)

Fallen by -4.61% (YoY

NET SALES(Q)

Highest at JPY 10,854.42 MM

-3What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -50.46 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.25 times

Here's what is working for Alpha Systems, Inc.

Net Sales

Highest at JPY 10,854.42 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Raw Material Cost

Fallen by -4.61% (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 78.68 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 Alpha Systems, Inc.

Debt-Equity Ratio

Highest at -50.46 % and Grown

In each half year 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

Debtors Turnover Ratio

Lowest at 4.25 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at JPY 0.05 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income