ScoreWhy is Atect Corp. ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Operating profit has grown by an annual rate 9.47% of over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 6.95% signifying low profitability per unit of shareholders funds
2
Flat results in Mar 26
- INTEREST COVERAGE RATIO(Q) Lowest at 1,890.35
- RAW MATERIAL COST(Y) Grown by 5.7% (YoY)
- DEBTORS TURNOVER RATIO(HY) Lowest at 6.54 times
3
With ROCE of 5.21%, it has a attractive valuation with a 1.42 Enterprise value to Capital Employed
- 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 60.00%, its profits have risen by 6.4% ; the PEG ratio of the company is 3.9
4
Underperformed the market in the last 1 year
- The stock has generated a return of 60.00% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 75.22%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Atect Corp. should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Atect Corp. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Atect Corp.
60.0%
-0.08
70.27%
Japan Nikkei 225
75.22%
2.67
28.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.25%
EBIT Growth (5y)
9.47%
EBIT to Interest (avg)
9.26
Debt to EBITDA (avg)
4.65
Net Debt to Equity (avg)
1.08
Sales to Capital Employed (avg)
0.76
Tax Ratio
38.61%
Dividend Payout Ratio
110.04%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.84%
ROE (avg)
6.95%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
1.82
EV to EBIT
27.31
EV to EBITDA
12.29
EV to Capital Employed
1.42
EV to Sales
1.52
PEG Ratio
3.92
Dividend Yield
NA
ROCE (Latest)
5.21%
ROE (Latest)
7.26%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
NET PROFIT(HY)
At JPY 58.8 MM has Grown at 270.4%
ROCE(HY)
Highest at 8%
DEBT-EQUITY RATIO
(HY)
Lowest at 97.7 %
INVENTORY TURNOVER RATIO(HY)
Highest at 3.77 times
-14What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 1,890.35
RAW MATERIAL COST(Y)
Grown by 5.7% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.54 times
INTEREST(Q)
Highest at JPY 5.14 MM
NET PROFIT(Q)
At JPY 22.63 MM has Fallen at -31.6%
Here's what is working for Atect Corp.
Debt-Equity Ratio
Lowest at 97.7 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 3.77 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Atect Corp.
Interest Coverage Ratio
Lowest at 1,890.35
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 5.14 MM
in the last five periods and Increased by 7.53% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Profit
At JPY 22.63 MM has Fallen at -31.6%
over average net sales of the previous four periods of JPY 33.08 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Debtors Turnover Ratio
Lowest at 6.54 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 5.7% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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