Business Engineering Corp. (4828) 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.

Softcreate Holdings Corp.

Business Engineering Corp.

NSW, Inc. (Japan)

Baudroie, Inc.

Alpha Systems, Inc.

Core Concept Technologies, Inc.

Tsuzuki Denki Co., Ltd.

JFE Systems, Inc.

SB Technology Corp.

Why is Business Engineering Corp. ?

Flat results in Mar 26

INVENTORY TURNOVER RATIO(HY) Lowest at 755.64 times
INTEREST(Q) Highest at JPY 1.83 MM

With ROE of 30.43%, it has a very attractive valuation with a 3.70 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 -77.23%, its profits have risen by 46.8%

Below par performance in long term as well as near term

Along with generating -77.23% returns in the last 1 year, the stock has also underperformed 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 Business Engineering Corp. 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 Business Engineering Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Business Engineering Corp.

-77.23%

-0.73

91.18%

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)

6.52%

EBIT Growth (5y)

27.08%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.69

Sales to Capital Employed (avg)

1.64

Tax Ratio

26.72%

Dividend Payout Ratio

50.87%

Pledged Shares

Institutional Holding

ROCE (avg)

128.73%

ROE (avg)

23.55%

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

3.70

EV to EBIT

7.40

EV to EBITDA

6.46

EV to Capital Employed

11.77

EV to Sales

1.94

PEG Ratio

Dividend Yield

ROCE (Latest)

159.11%

ROE (Latest)

30.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

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

7What is working for the Company

ROCE(HY)

Highest at 33.21%

DIVIDEND PER SHARE(HY)

Highest at JPY 5.62

DIVIDEND PAYOUT RATIO(Y)

Highest at 130.18%

RAW MATERIAL COST(Y)

Fallen by -10.11% (YoY

CASH AND EQV(HY)

Highest at JPY 22,916.87 MM

-10What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 755.64 times

INTEREST(Q)

Highest at JPY 1.83 MM

Here's what is working for Business Engineering Corp.

Dividend per share

Highest at JPY 5.62 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Cash and Eqv

Highest at JPY 22,916.87 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 130.18%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -10.11% (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 260.65 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 Business Engineering Corp.

Interest

At JPY 1.83 MM has Grown at 1,232.85%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 1.83 MM

in the last five periods and Increased by 1,232.85% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 755.64 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio