Broadleaf Co., Ltd. (3673) 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

Argo Graphics, Inc.

Software Service, Inc.

Miroku Jyoho Service Co., Ltd.

Japan Business Systems, Inc.

Avant Group Corp.

Fukui Computer Holdings, Inc.

Broadleaf Co., Ltd.

AnyMind Group Inc.

COLOPL, Inc.

EM Systems Co., Ltd.

Sun Asterisk, Inc.

Why is Broadleaf Co., Ltd. ?

Weak Long Term Fundamental Strength with a -25.36% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 3.43% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -3.91% and Operating profit at -25.36% over the last 5 years

With a growth in Net Profit of 101.54%, the company declared Very Positive results in Dec 25

The company has declared positive results for the last 7 consecutive quarters
OPERATING CASH FLOW(Y) Highest at JPY 6,896.59 MM
ROCE(HY) Highest at 5.23%
RAW MATERIAL COST(Y) Fallen by -1.05% (YoY)

With ROE of 2.41%, it has a attractive valuation with a 3.05 Price to Book Value

Over the past year, while the stock has generated a return of 48.31%, its profits have risen by 151.8% ; the PEG ratio of the company is 0.8

Market Beating performance in long term as well as near term

Along with generating 48.31% returns in the last 1 year, the stock has outperformed 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 Broadleaf Co., Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Broadleaf Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Broadleaf Co., Ltd.

46.16%

21.75

38.53%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.91%

EBIT Growth (5y)

-25.36%

EBIT to Interest (avg)

0.94

Debt to EBITDA (avg)

1.86

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

0.57

Tax Ratio

31.37%

Dividend Payout Ratio

51.92%

Pledged Shares

Institutional Holding

ROCE (avg)

5.82%

ROE (avg)

3.43%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

126

Industry P/E

Price to Book Value

3.05

EV to EBIT

68.21

EV to EBITDA

17.95

EV to Capital Employed

2.81

EV to Sales

3.93

PEG Ratio

0.83

Dividend Yield

ROCE (Latest)

4.12%

ROE (Latest)

2.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly 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

21What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 6,896.59 MM

ROCE(HY)

Highest at 5.23%

RAW MATERIAL COST(Y)

Fallen by -1.05% (YoY

CASH AND EQV(HY)

Highest at JPY 8,151.41 MM

DEBT-EQUITY RATIO (HY)

Lowest at 1.39 %

NET SALES(Q)

Highest at JPY 5,584.58 MM

NET PROFIT(Q)

At JPY 367.77 MM has Grown at 101.54%

-10What is not working for the Company

INTEREST(HY)

At JPY 40.78 MM has Grown at 32.67%

INVENTORY TURNOVER RATIO(HY)

Lowest at 28.51 times

Here's what is working for Broadleaf Co., Ltd.

Operating Cash Flow

Highest at JPY 6,896.59 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

Highest at JPY 5,584.58 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

At JPY 367.77 MM has Grown at 101.54%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 8,151.41 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 1.39 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -1.05% (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 841.54 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 Broadleaf Co., Ltd.

Interest

At JPY 40.78 MM has Grown at 32.67%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 28.51 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio