Baudroie, Inc. () 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.

Computer Engineering & Consulting Ltd.

Smaregi, Inc.

Softcreate Holdings Corp.

NSW, Inc. (Japan)

Baudroie, Inc.

Core Concept Technologies, Inc.

Tsuzuki Denki Co., Ltd.

JFE Systems, Inc.

SB Technology Corp.

Why is Baudroie, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 28.58%

Healthy long term growth as Net Sales has grown by an annual rate of 605.07% and Operating profit at 304.65%
Company has very low debt and has enough cash to service the debt requirements

Negative results in May 26

OPERATING CASH FLOW(Y) Lowest at JPY 0 MM
INTEREST COVERAGE RATIO(Q) Lowest at 7,411.07
RAW MATERIAL COST(Y) Grown by 10.79% (YoY)

With ROCE of 60.71%, it has a expensive valuation with a 13.48 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 -20.41%, its profits have risen by 36.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -20.41% 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 hold?

Overall Portfolio exposure to Baudroie, 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 Baudroie, Inc. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Baudroie, Inc.

-20.41%

1.21

51.12%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

605.07%

EBIT Growth (5y)

304.65%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

1.56

Tax Ratio

27.50%

Dividend Payout Ratio

9.58%

Pledged Shares

Institutional Holding

ROCE (avg)

88.95%

ROE (avg)

28.58%

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

10.00

EV to EBIT

22.21

EV to EBITDA

20.51

EV to Capital Employed

13.48

EV to Sales

4.31

PEG Ratio

Dividend Yield

ROCE (Latest)

60.71%

ROE (Latest)

31.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

14What is working for the Company

ROCE(HY)

Highest at 40.51%

NET SALES(Q)

Highest at JPY 5,407.29 MM

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 0 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 7,411.07

RAW MATERIAL COST(Y)

Grown by 10.79% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -23.8 %

INTEREST(Q)

Highest at JPY 12.41 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 17.01 %

Here's what is working for Baudroie, Inc.

Net Sales

Highest at JPY 5,407.29 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

At JPY 5,407.29 MM has Grown at 60.84%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Depreciation

Highest at JPY 81.91 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 Baudroie, Inc.

Interest

At JPY 12.41 MM has Grown at 46.95%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 7,411.07

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at JPY 0 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Interest

Highest at JPY 12.41 MM

in the last five periods and Increased by 46.95% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 17.01 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -23.8 %

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

Raw Material Cost

Grown by 10.79% (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