Cube System Inc. (2335) 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

SERAKU Co., Ltd.

KSK Co., Ltd.

Toumei Co. Ltd.

TASUKI Corp.

Cube System Inc.

Systems Engineering Consultants Co., Ltd.

SpiderPlus & Co.

Minkabu The Infonoid Inc.

Pole To Win Holdings, Inc.

MedPeer, Inc.

System Information Co., Ltd.

Why is Cube System Inc. ?

With ROE of 12.79%, it has a very attractive valuation with a 1.44 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 -11.16%, its profits have risen by 48.9% ; the PEG ratio of the company is 0.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Cube System Inc. 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 Cube System Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Cube System Inc.

-11.28%

-0.33

18.17%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.57%

EBIT Growth (5y)

7.62%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.55

Sales to Capital Employed (avg)

1.69

Tax Ratio

23.30%

Dividend Payout Ratio

44.51%

Pledged Shares

Institutional Holding

ROCE (avg)

42.77%

ROE (avg)

11.26%

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

1.44

EV to EBIT

5.81

EV to EBITDA

5.49

EV to Capital Employed

2.08

EV to Sales

0.52

PEG Ratio

0.23

Dividend Yield

ROCE (Latest)

35.81%

ROE (Latest)

12.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

7What is working for the Company

ROCE(HY)

Highest at 14.42%

NET PROFIT(9M)

Higher at JPY 1,234.34 MM

CASH AND EQV(HY)

Highest at JPY 14,122 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1,296.45 times

-11What is not working for the Company

INTEREST(9M)

At JPY 2 MM has Grown at inf%

INTEREST COVERAGE RATIO(Q)

Lowest at 40,200

NET PROFIT(Q)

At JPY 222 MM has Fallen at -43.25%

RAW MATERIAL COST(Y)

Grown by 5.16% (YoY

PRE-TAX PROFIT(Q)

Lowest at JPY 355 MM

Here's what is working for Cube System Inc.

Cash and Eqv

Highest at JPY 14,122 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 1,296.45 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Cube System Inc.

Interest

At JPY 2 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 40,200

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At JPY 222 MM has Fallen at -43.25%

over average net sales of the previous four periods of JPY 391.21 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 355 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 355 MM has Fallen at -30.39%

over average net sales of the previous four periods of JPY 510 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Raw Material Cost

Grown by 5.16% (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