Computer Engineering & Consulting Ltd. (9692) 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

Systena Corp.

Future Corp.

I'LL Inc.

Simplex Holdings, Inc.

DTS Corp.

Zuken, Inc.

Computer Engineering & Consulting Ltd.

Comture Corp.

Daikoku Denki Co., Ltd.

TechMatrix Corp.

TRE Holdings Corp.

Why is Computer Engineering & Consulting Ltd. ?

High Management Efficiency with a high ROE of 11.45%

Company has very low debt and has enough cash to service the debt requirements

Positive results in Apr 26

ROCE(HY) Highest at 13.5%
RAW MATERIAL COST(Y) Fallen by 1.79% (YoY)
DEBTORS TURNOVER RATIO(HY) Highest at 7.1 times

With ROE of 12.67%, it has a very attractive valuation with a 1.74 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 -2.69%, its profits have risen by 16.7% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Computer Engineering & Consulting Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Computer Engineering & Consulting Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Computer Engineering & Consulting Ltd.

-100.0%

0.08

26.25%

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)

4.58%

EBIT Growth (5y)

6.38%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.61

Sales to Capital Employed (avg)

1.39

Tax Ratio

29.97%

Dividend Payout Ratio

42.26%

Pledged Shares

Institutional Holding

ROCE (avg)

39.97%

ROE (avg)

11.45%

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

1.74

EV to EBIT

6.49

EV to EBITDA

5.86

EV to Capital Employed

2.82

EV to Sales

0.74

PEG Ratio

0.63

Dividend Yield

0.05%

ROCE (Latest)

43.43%

ROE (Latest)

12.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Bullish

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

12What is working for the Company

ROCE(HY)

Highest at 13.5%

RAW MATERIAL COST(Y)

Fallen by 1.79% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 7.1 times

NET SALES(Q)

At JPY 16,794 MM has Grown at 17.15%

OPERATING PROFIT(Q)

Highest at JPY 2,532 MM

OPERATING PROFIT MARGIN(Q)

Highest at 15.08 %

PRE-TAX PROFIT(Q)

Highest at JPY 2,336 MM

-7What is not working for the Company

INTEREST(9M)

At JPY 4 MM has Grown at 538.98%

INVENTORY TURNOVER RATIO(HY)

Lowest at 16.68 times

Here's what is working for Computer Engineering & Consulting Ltd.

Net Sales

At JPY 16,794 MM has Grown at 17.15%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 2,532 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 15.08 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 2,336 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Debtors Turnover Ratio

Highest at 7.1 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 1.79% (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

Depreciation

Highest at JPY 216 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Here's what is not working for Computer Engineering & Consulting Ltd.

Interest

At JPY 4 MM has Grown at 538.98%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 16.68 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio