ScoreWhy is C&G Systems Inc. (Japan) ?
1
Weak Long Term Fundamental Strength with a 8.25% CAGR growth in Net Sales over the last 5 years
2
Poor long term growth as Net Sales has grown by an annual rate of 8.25% over the last 5 years
3
Positive results in Jun 26
- NET SALES(HY) At JPY 2,883.9 MM has Grown at 28.15%
- CASH AND EQV(HY) Highest at JPY 5,718.54 MM
- DEBT-EQUITY RATIO (HY) Lowest at -94.1 %
4
With ROE of 8.84%, it has a very attractive valuation with a 0.99 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 -0.91%, its profits have risen by 56.2% ; the PEG ratio of the company is 0.2
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -0.91% 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 ReportHow much should you hold?
- Overall Portfolio exposure to C&G Systems Inc. (Japan) 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 C&G Systems Inc. (Japan) for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
C&G Systems Inc. (Japan)
-1.22%
0.07
28.67%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.25%
EBIT Growth (5y)
13.92%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.84
Sales to Capital Employed (avg)
1.33
Tax Ratio
30.61%
Dividend Payout Ratio
35.99%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
138.96%
ROE (avg)
6.20%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
0.99
EV to EBIT
1.58
EV to EBITDA
1.22
EV to Capital Employed
0.95
EV to Sales
0.12
PEG Ratio
0.20
Dividend Yield
NA
ROCE (Latest)
60.14%
ROE (Latest)
8.84%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
NET SALES(HY)
At JPY 2,883.9 MM has Grown at 28.15%
CASH AND EQV(HY)
Highest at JPY 5,718.54 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -94.1 %
DEBTORS TURNOVER RATIO(HY)
Highest at 7.96 times
-20What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 17.59% (YoY
OPERATING PROFIT(Q)
Lowest at JPY 15.02 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 1.05 %
PRE-TAX PROFIT(Q)
Lowest at JPY 1.87 MM
NET PROFIT(Q)
Lowest at JPY -8.78 MM
EPS(Q)
Lowest at JPY -0.92
Here's what is working for C&G Systems Inc. (Japan)
Net Sales
At JPY 2,883.9 MM has Grown at 28.15%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Cash and Eqv
Highest at JPY 5,718.54 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -94.1 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 7.96 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Depreciation
Highest at JPY 41.48 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for C&G Systems Inc. (Japan)
Pre-Tax Profit
At JPY 1.87 MM has Fallen at -98.21%
over average net sales of the previous four periods of JPY 104.25 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY -8.78 MM has Fallen at -114%
over average net sales of the previous four periods of JPY 62.7 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Operating Profit
Lowest at JPY 15.02 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 1.05 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 1.87 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY -8.78 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY -0.92
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Raw Material Cost
Grown by 17.59% (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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