Daiwa Computer Co., Ltd. (3816) 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

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Daiwa Computer Co., Ltd.

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Bplats, Inc.

Ubiquitous AI Corp.

Why is Daiwa Computer Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 3.81% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(HY) At JPY 102.92 MM has Grown at -51.27%
INTEREST(HY) At JPY 0.07 MM has Grown at 18.33%
ROCE(HY) Lowest at 4.72%

With ROE of 4.90%, it has a fair valuation with a 0.84 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 -4.89%, its profits have fallen by -30.4%

Below par performance in long term as well as near term

Along with generating -4.89% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Daiwa Computer Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Daiwa Computer Co., Ltd.

-5.46%

-0.25

15.35%

Japan Nikkei 225

81.96%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.81%

EBIT Growth (5y)

-5.56%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.71

Sales to Capital Employed (avg)

0.62

Tax Ratio

32.41%

Dividend Payout Ratio

17.64%

Pledged Shares

Institutional Holding

ROCE (avg)

35.35%

ROE (avg)

7.25%

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

0.84

EV to EBIT

2.06

EV to EBITDA

1.84

EV to Capital Employed

0.44

EV to Sales

0.21

PEG Ratio

Dividend Yield

ROCE (Latest)

21.23%

ROE (Latest)

4.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

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

2What is working for the Company

CASH AND EQV(HY)

Highest at JPY 7,683.41 MM

NET SALES(Q)

Highest at JPY 834.82 MM

-14What is not working for the Company

NET PROFIT(HY)

At JPY 102.92 MM has Grown at -51.27%

INTEREST(HY)

At JPY 0.07 MM has Grown at 18.33%

ROCE(HY)

Lowest at 4.72%

RAW MATERIAL COST(Y)

Grown by 9.45% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -69.57 %

Here's what is working for Daiwa Computer Co., Ltd.

Net Sales

Highest at JPY 834.82 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 7,683.41 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 11.71 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 Daiwa Computer Co., Ltd.

Net Profit

At JPY 102.92 MM has Grown at -51.27%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 0.07 MM has Grown at 18.33%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -69.57 %

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

Raw Material Cost

Grown by 9.45% (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