ASAHI Net, Inc. (3834) 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

Internet Initiative Japan, Inc.

Broad Enterprise Co., Ltd.

Nippon Telegraph & Telephone Corp.

ARTERIA Networks Corp.

ASAHI Net, Inc.

Why is ASAHI Net, Inc. ?

Negative results in Jun 26

ROCE(HY) Lowest at 8.92%
DEBT-EQUITY RATIO (HY) Highest at -22.67 %
RAW MATERIAL COST(Y) Grown by 17.82% (YoY)

With ROE of 11.23%, it has a very attractive valuation with a 1.49 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 -10.60%, its profits have fallen by -18.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -10.60% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is ASAHI Net, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

ASAHI Net, Inc.

-11.54%

-0.43

13.79%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.88%

EBIT Growth (5y)

3.68%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.39

Sales to Capital Employed (avg)

1.02

Tax Ratio

28.96%

Dividend Payout Ratio

50.36%

Pledged Shares

Institutional Holding

0.25%

ROCE (avg)

27.85%

ROE (avg)

12.12%

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

1.49

EV to EBIT

7.98

EV to EBITDA

5.07

EV to Capital Employed

1.66

EV to Sales

1.19

PEG Ratio

Dividend Yield

ROCE (Latest)

20.76%

ROE (Latest)

11.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

INVENTORY TURNOVER RATIO(HY)

Highest at 7.36 times

NET SALES(Q)

Highest at JPY 3,402 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 6.53 times

-17What is not working for the Company

ROCE(HY)

Lowest at 8.92%

DEBT-EQUITY RATIO (HY)

Highest at -22.67 %

RAW MATERIAL COST(Y)

Grown by 17.82% (YoY

CASH AND EQV(HY)

Lowest at JPY 5,902 MM

OPERATING PROFIT(Q)

Lowest at JPY 673 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 19.78 %

PRE-TAX PROFIT(Q)

Lowest at JPY 294 MM

NET PROFIT(Q)

Lowest at JPY 203 MM

EPS(Q)

Lowest at JPY 7.83

Here's what is working for ASAHI Net, Inc.

Net Sales

Highest at JPY 3,402 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 7.36 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 6.53 times

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 ASAHI Net, Inc.

Debt-Equity Ratio

Highest at -22.67 % 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

Operating Profit

Lowest at JPY 673 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 19.78 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 294 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 -42.58%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 203 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

Fallen at -43.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 7.83

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 5,902 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 17.82% (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