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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

DeNA Co., Ltd.

JustSystems Corp.

RAKUS Co., Ltd.

NSD Co., Ltd.

CHANGE Holdings, Inc.

Sansan, Inc.

Appier Group, Inc.

freee K.K.

MIXI, Inc.

Money Forward, Inc.

GungHo Online Entertainment, Inc.

Why is CHANGE Holdings, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 19.87%

Healthy long term growth as Net Sales has grown by an annual rate of 45.74% and Operating profit at 63.52%
Company has very low debt and has enough cash to service the debt requirements

With ROE of 21.35%, it has a expensive valuation with a 2.13 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 -21.88%, its profits have risen by 30.9% ; the PEG ratio of the company is 0.3

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

CHANGE Holdings, Inc.

-22.61%

-0.44

45.15%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

45.74%

EBIT Growth (5y)

63.52%

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)

0.60

Tax Ratio

37.71%

Dividend Payout Ratio

19.44%

Pledged Shares

Institutional Holding

ROCE (avg)

108.72%

ROE (avg)

19.87%

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

2.13

EV to EBIT

7.24

EV to EBITDA

6.09

EV to Capital Employed

2.05

EV to Sales

1.97

PEG Ratio

0.34

Dividend Yield

ROCE (Latest)

28.26%

ROE (Latest)

21.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

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

10What is working for the Company

NET SALES(HY)

At JPY 21,358 MM has Grown at 30.58%

NET PROFIT(Q)

At JPY 469 MM has Grown at 120.04%

RAW MATERIAL COST(Y)

Fallen by -14.68% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 49.17%

-24What is not working for the Company

NET PROFIT(HY)

At JPY -6,893.42 MM has Grown at -843.63%

INTEREST(HY)

At JPY 389 MM has Grown at 35.07%

NET SALES(Q)

At JPY 9,908 MM has Fallen at -14.56%

PRE-TAX PROFIT(Q)

At JPY 908 MM has Fallen at -72.58%

OPERATING PROFIT(Q)

Lowest at JPY 1,194 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.05 %

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

Net Profit

At JPY 469 MM has Grown at 120.04%

over average net sales of the previous four periods of JPY 213.14 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 49.17%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -14.68% (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 CHANGE Holdings, Inc.

Interest

At JPY 389 MM has Grown at 35.07%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 9,908 MM has Fallen at -14.56%

over average net sales of the previous four periods of JPY 11,596.75 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 908 MM has Fallen at -72.58%

over average net sales of the previous four periods of JPY 3,311 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Operating Profit

Lowest at JPY 1,194 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 12.05 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales