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

SUNNY SIDE UP GROUP, Inc.

FreakOut Holdings, Inc.

Members Co., Ltd.

Cross Marketing Group, Inc.

CMC Corp.

Adways, Inc.

Ceres, Inc. (Japan)

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

The company declared very negative results in Mar'25 after flat results in Dec'24

NET PROFIT(Q) At JPY 224.57 MM has Fallen at -72.17%
INVENTORY TURNOVER RATIO(HY) Lowest at 9.03 times
INTEREST(Q) At JPY 17.55 MM has Grown at 21.83%

With ROE of 8.76%, it has a very attractive valuation with a 2.55 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 -39.92%, its profits have fallen by -40.3%

Below par performance in long term as well as near term

Along with generating -39.92% 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 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)

-40.38%

-0.43

51.42%

Japan Nikkei 225

36.73%

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)

10.95%

EBIT Growth (5y)

15.39%

EBIT to Interest (avg)

83.60

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

1.41

Tax Ratio

57.93%

Dividend Payout Ratio

46.53%

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

2.54

EV to EBIT

9.56

EV to EBITDA

8.05

EV to Capital Employed

3.40

EV to Sales

0.79

PEG Ratio

Dividend Yield

ROCE (Latest)

35.56%

ROE (Latest)

8.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

NET PROFIT(9M)

Higher at JPY 2,717.26 MM

CASH AND EQV(HY)

Highest at JPY 31,039.46 MM

DEBT-EQUITY RATIO (HY)

Lowest at -47.16 %

-24What is not working for the Company

NET PROFIT(Q)

At JPY 224.57 MM has Fallen at -72.17%

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.03 times

INTEREST(Q)

At JPY 17.55 MM has Grown at 21.83%

INTEREST COVERAGE RATIO(Q)

Lowest at 3,161.98

RAW MATERIAL COST(Y)

Grown by 12.28% (YoY

OPERATING PROFIT(Q)

Lowest at JPY 554.89 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.51 %

PRE-TAX PROFIT(Q)

Lowest at JPY 300.58 MM

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

Cash and Eqv

Highest at JPY 31,039.46 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -47.16 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Depreciation

Highest at JPY 164.59 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 164.59 MM has Grown at 38.86%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

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

Pre-Tax Profit

At JPY 300.58 MM has Fallen at -79.04%

over average net sales of the previous four periods of JPY 1,433.9 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 224.57 MM has Fallen at -72.17%

over average net sales of the previous four periods of JPY 806.95 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 17.55 MM has Grown at 21.83%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 3,161.98

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 9.03 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

Operating Profit

Lowest at JPY 554.89 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 7.51 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 300.58 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Raw Material Cost

Grown by 12.28% (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