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

Cube System Inc.

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SpiderPlus & Co.

Systems Engineering Consultants Co., Ltd.

System Information Co., Ltd.

KSK Co., Ltd.

Pole To Win Holdings, Inc.

Minkabu The Infonoid Inc.

MedPeer, Inc.

Why is Cube System Inc. ?

High Management Efficiency with a high ROE of 11.26%

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

With a growth in Operating Profit of 81.11%, the company declared Very Positive results in Dec 25

ROCE(HY) Highest at 13.38%
RAW MATERIAL COST(Y) Fallen by -7.56% (YoY)
PRE-TAX PROFIT(Q) Highest at JPY 780 MM

With ROE of 9.24%, it has a very attractive valuation with a 1.55 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 0.68%, its profits have fallen by -5.8%

Real-Time Research Report

Verdict Report

How much should you buy?

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.

0.68%

-0.34

21.44%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.53%

EBIT Growth (5y)

7.58%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.55

Sales to Capital Employed (avg)

1.72

Tax Ratio

28.74%

Dividend Payout Ratio

47.74%

Pledged Shares

Institutional Holding

ROCE (avg)

46.37%

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

1.55

EV to EBIT

7.82

EV to EBITDA

7.51

EV to Capital Employed

2.22

EV to Sales

0.59

PEG Ratio

Dividend Yield

ROCE (Latest)

28.37%

ROE (Latest)

9.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

13What is working for the Company

ROCE(HY)

Highest at 13.38%

RAW MATERIAL COST(Y)

Fallen by -7.56% (YoY

PRE-TAX PROFIT(Q)

Highest at JPY 780 MM

NET PROFIT(Q)

Highest at JPY 523.34 MM

EPS(Q)

Highest at JPY 34.39

-5What is not working for the Company

INTEREST(9M)

At JPY 1 MM has Grown at inf%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.78 times

Here's what is working for Cube System Inc.

Pre-Tax Profit

Highest at JPY 780 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 780 MM has Grown at 83.96%

over average net sales of the previous four periods of JPY 424 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 523.34 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 523.34 MM has Grown at 82.36%

over average net sales of the previous four periods of JPY 286.98 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 34.39

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -7.56% (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 35 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Depreciation

At JPY 35 MM has Grown at 29.63%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

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

Interest

At JPY 1 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 5.78 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at JPY 0.48 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income