CRI Middleware Co., Ltd. (3698) 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

Axis Co., Ltd. (Tokyo)

Dawn Corp.

CRI Middleware Co., Ltd.

SMN Corp.

Showa System Engineering Corp.

BlueMeme, Inc.

Sinops, Inc.

Ficha, Inc.

Nippon Ichi Software, Inc.

Nulab, Inc. (Japan)

ImageONE Co., Ltd.

Why is CRI Middleware Co., Ltd. ?

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

With a growth in Net Profit of 15.61%, the company declared Very Positive results in Mar 26

DIVIDEND PAYOUT RATIO(Y) Highest at 34.62%
RAW MATERIAL COST(Y) Fallen by -4.84% (YoY)
INVENTORY TURNOVER RATIO(HY) Highest at 134.27 times

With ROE of 8.82%, it has a fair valuation with a 1.38 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 -24.75%, its profits have fallen by -9.3%

Below par performance in long term as well as near term

Along with generating -24.75% 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 CRI Middleware Co., Ltd. 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 CRI Middleware Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

CRI Middleware Co., Ltd.

-15.37%

0.66

41.82%

Japan Nikkei 225

88.41%

3.12

27.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.81%

EBIT Growth (5y)

-0.50%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.75

Sales to Capital Employed (avg)

0.72

Tax Ratio

26.27%

Dividend Payout Ratio

31.05%

Pledged Shares

Institutional Holding

ROCE (avg)

34.31%

ROE (avg)

7.43%

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

1.38

EV to EBIT

5.85

EV to EBITDA

4.63

EV to Capital Employed

2.38

EV to Sales

0.78

PEG Ratio

Dividend Yield

ROCE (Latest)

40.69%

ROE (Latest)

8.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

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

9What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 34.62%

RAW MATERIAL COST(Y)

Fallen by -4.84% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 134.27 times

DIVIDEND PER SHARE(HY)

Highest at JPY 3.77

NET SALES(Q)

Highest at JPY 1,045.98 MM

OPERATING PROFIT(Q)

Highest at JPY 293.12 MM

PRE-TAX PROFIT(Q)

Highest at JPY 275.25 MM

NET PROFIT(Q)

Highest at JPY 191.01 MM

EPS(Q)

Highest at JPY 37.55

-3What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 5,709.44 MM

DEBT-EQUITY RATIO (HY)

Highest at -68.13 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.77 times

Here's what is working for CRI Middleware Co., Ltd.

Net Sales

Highest at JPY 1,045.98 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 293.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 275.25 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 191.01 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 37.55

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 134.27 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 3.77

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 34.62%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -4.84% (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 CRI Middleware Co., Ltd.

Cash and Eqv

Lowest at JPY 5,709.44 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -68.13 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 3.77 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio