CHANGE Holdings, Inc. (3962) 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

RAKUS Co., Ltd.

NSD Co., Ltd.

CHANGE Holdings, Inc.

Money Forward, Inc.

Sansan, Inc.

JustSystems Corp.

MIXI, Inc.

GungHo Online Entertainment, Inc.

Appier Group, Inc.

freee K.K.

DeNA Co., Ltd.

Why is CHANGE Holdings, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 19.84%

Healthy long term growth as Net Sales has grown by an annual rate of 38.26% and Operating profit at 27.33%
Company has very low debt and has enough cash to service the debt requirements

With ROE of 15.36%, it has a attractive valuation with a 1.54 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 -20.32%, its profits have fallen by -11.1%

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to CHANGE Holdings, Inc. 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 CHANGE Holdings, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

CHANGE Holdings, Inc.

-20.32%

-0.79

32.10%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

38.26%

EBIT Growth (5y)

27.33%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

0.63

Tax Ratio

37.71%

Dividend Payout Ratio

19.44%

Pledged Shares

Institutional Holding

ROCE (avg)

108.72%

ROE (avg)

19.84%

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

1.54

EV to EBIT

6.53

EV to EBITDA

5.30

EV to Capital Employed

1.49

EV to Sales

1.45

PEG Ratio

Dividend Yield

ROCE (Latest)

22.87%

ROE (Latest)

15.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

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

18What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 2.69

DIVIDEND PAYOUT RATIO(Y)

Highest at 2,909.55%

INVENTORY TURNOVER RATIO(HY)

Highest at 50.09 times

NET PROFIT(Q)

At JPY 76.07 MM has Grown at 111.51%

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 7,253 MM

NET SALES(Q)

At JPY 11,300 MM has Fallen at -14.68%

INTEREST(Q)

At JPY 141 MM has Grown at 10.16%

RAW MATERIAL COST(Y)

Grown by 6.73% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 10.59 %

PRE-TAX PROFIT(Q)

Lowest at JPY 148 MM

Here's what is working for CHANGE Holdings, Inc.

Net Profit

At JPY 76.07 MM has Grown at 165.79%

over average net sales of the previous four periods of JPY -115.61 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Dividend per share

Highest at JPY 2.69 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Profit

At JPY 76.07 MM has Grown at 111.51%

over average net sales of the previous four periods of JPY -661.13 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 50.09 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 2,909.55%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for CHANGE Holdings, Inc.

Net Sales

At JPY 11,300 MM has Fallen at -14.68%

over average net sales of the previous four periods of JPY 13,244.25 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 148 MM has Fallen at -94.89%

over average net sales of the previous four periods of JPY 2,897.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Operating Cash Flow

Lowest at JPY 7,253 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Interest

At JPY 141 MM has Grown at 10.16%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 10.59 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 148 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 6.73% (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