Applied Technology Co., Ltd. (4356) 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

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Applied Technology Co., Ltd.

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SAKURA KCS Corp.

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DLE, Inc.

Why is Applied Technology Co., Ltd. ?

High Management Efficiency with a high ROE of 15.77%

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

Positive results in Dec 25

ROCE(HY) Highest at 15.56%
DIVIDEND PAYOUT RATIO(Y) Highest at 110.91%
RAW MATERIAL COST(Y) Fallen by -6.93% (YoY)

With ROE of 13.83%, it has a very attractive valuation with a 1.70 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 13.67%, its profits have risen by 9.2% ; the PEG ratio of the company is 1.4

Underperformed the market in the last 1 year

The stock has generated a return of 13.67% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.94%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Applied Technology Co., Ltd. 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 Applied Technology Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Applied Technology Co., Ltd.

-100.0%

0.48

30.21%

Japan Nikkei 225

38.94%

1.38

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.94%

EBIT Growth (5y)

12.52%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.67

Sales to Capital Employed (avg)

1.44

Tax Ratio

27.33%

Dividend Payout Ratio

23.60%

Pledged Shares

Institutional Holding

ROCE (avg)

45.85%

ROE (avg)

15.77%

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

1.70

EV to EBIT

5.81

EV to EBITDA

5.53

EV to Capital Employed

3.13

EV to Sales

0.75

PEG Ratio

1.35

Dividend Yield

ROCE (Latest)

53.79%

ROE (Latest)

13.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

5What is working for the Company

ROCE(HY)

Highest at 15.56%

DIVIDEND PAYOUT RATIO(Y)

Highest at 110.91%

RAW MATERIAL COST(Y)

Fallen by -6.93% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 3.07

-3What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 0 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.07 times

OPERATING PROFIT MARGIN(Q)

Lowest at 12.09 %

Here's what is working for Applied Technology Co., Ltd.

Dividend per share

Highest at JPY 3.07

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 110.91%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -6.93% (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 Applied Technology Co., Ltd.

Operating Profit Margin

Lowest at 12.09 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 0 %

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 3.07 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 0.15 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income