ScoreWhy is CONVUM Ltd. ?
1
Poor Management Efficiency with a low ROE of 5.94%
- The company has been able to generate a Return on Equity (avg) of 5.94% signifying low profitability per unit of shareholders funds
2
Company has very low debt and has enough cash to service the debt requirements
3
Poor long term growth as Net Sales has grown by an annual rate of -3.21% and Operating profit at 8.58% over the last 5 years
4
Flat results in Jun 25
- OPERATING PROFIT(Q) Lowest at JPY 121.58 MM
- OPERATING PROFIT MARGIN(Q) Lowest at 24.58 %
- PRE-TAX PROFIT(Q) Lowest at JPY 81.13 MM
5
With ROE of 4.44%, it has a very attractive valuation with a 0.58 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 17.66%, its profits have risen by 19.1% ; the PEG ratio of the company is 0.7
6
Underperformed the market in the last 1 year
- The stock has generated a return of 17.66% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to CONVUM Ltd. should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is CONVUM Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
CONVUM Ltd.
17.66%
0.64
26.94%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-3.21%
EBIT Growth (5y)
8.58%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.48
Sales to Capital Employed (avg)
0.34
Tax Ratio
28.54%
Dividend Payout Ratio
31.37%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
13.62%
ROE (avg)
5.94%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
0.58
EV to EBIT
1.84
EV to EBITDA
1.13
EV to Capital Employed
0.19
EV to Sales
0.31
PEG Ratio
0.68
Dividend Yield
NA
ROCE (Latest)
10.26%
ROE (Latest)
4.44%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Bearish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 2.75%
DIVIDEND PAYOUT RATIO(Y)
Highest at 71.35%
RAW MATERIAL COST(Y)
Fallen by 1.19% (YoY
CASH AND EQV(HY)
Highest at JPY 5,728.26 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -49.14 %
NET SALES(Q)
Highest at JPY 494.52 MM
-5What is not working for the Company
OPERATING PROFIT(Q)
Lowest at JPY 121.58 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 24.58 %
PRE-TAX PROFIT(Q)
Lowest at JPY 81.13 MM
NET PROFIT(Q)
Lowest at JPY 55.13 MM
EPS(Q)
Lowest at JPY 35.04
Here's what is working for CONVUM Ltd.
Inventory Turnover Ratio
Highest at 2.75% and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Sales
Highest at JPY 494.52 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Cash and Eqv
Highest at JPY 5,728.26 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -49.14 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend Payout Ratio
Highest at 71.35%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by 1.19% (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 CONVUM Ltd.
Operating Profit
Lowest at JPY 121.58 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 24.58 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 81.13 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 55.13 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 35.04
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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