Ceres, Inc. (Japan) (3696) 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

Members Co., Ltd.

FreakOut Holdings, Inc.

SUNNY SIDE UP GROUP, Inc.

CMC Corp.

Ceres, Inc. (Japan)

Cross Marketing Group, Inc.

Adways, Inc.

Agile Media Network, Inc.

Cookpad, Inc.

Digital Holdings, Inc.

Bleach, Inc.

Why is Ceres, Inc. (Japan) ?

High Management Efficiency with a high ROE of 13.65%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 83.60

Positive results in Mar 26

NET PROFIT(HY) At JPY 1,217.54 MM has Grown at 65.63%
ROCE(HY) Highest at 30.09%
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost

With ROE of 20.98%, it has a very attractive valuation with a 1.44 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 -25.80%, its profits have risen by 57.6% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Ceres, Inc. (Japan) should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

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

Is Ceres, Inc. (Japan) for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ceres, Inc. (Japan)

-100.0%

-0.16

49.96%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.97%

EBIT Growth (5y)

9.29%

EBIT to Interest (avg)

83.60

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

1.38

Tax Ratio

57.93%

Dividend Payout Ratio

27.70%

Pledged Shares

Institutional Holding

ROCE (avg)

32.65%

ROE (avg)

13.65%

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

1.44

EV to EBIT

5.54

EV to EBITDA

4.57

EV to Capital Employed

1.84

EV to Sales

0.44

PEG Ratio

0.12

Dividend Yield

ROCE (Latest)

33.21%

ROE (Latest)

20.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

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

16What is working for the Company

NET PROFIT(HY)

At JPY 1,217.54 MM has Grown at 65.63%

ROCE(HY)

Highest at 30.09%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -8.66% (YoY

CASH AND EQV(HY)

Highest at JPY 32,104.18 MM

NET SALES(Q)

Highest at JPY 9,521.67 MM

OPERATING PROFIT(Q)

Highest at JPY 1,885.91 MM

OPERATING PROFIT MARGIN(Q)

Highest at 19.81 %

-15What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.14 times

DEBT-EQUITY RATIO (HY)

Highest at -32.76 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.55 times

INTEREST(Q)

Highest at JPY 19.45 MM

Here's what is working for Ceres, Inc. (Japan)

Net Sales

At JPY 9,521.67 MM has Grown at 28.41%

over average net sales of the previous four periods of JPY 7,415.1 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Profit

At JPY 1,217.54 MM has Grown at 65.63%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 9,521.67 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,885.91 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 19.81 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at JPY 32,104.18 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -8.66% (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

Here's what is not working for Ceres, Inc. (Japan)

Interest

At JPY 19.45 MM has Grown at 10.84%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 9.14 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at JPY 19.45 MM

in the last five periods and Increased by 10.84% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -32.76 %

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

Debtors Turnover Ratio

Lowest at 6.55 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio