D.I. System Co., Ltd. (4421) 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

Gooddays Holdings, Inc.

e-Seikatsu Co., Ltd.

D.I. System Co., Ltd.

SIOS Corp.

DIGITAL PLUS, Inc.

and Factory, Inc.

AltPlus Inc.

Daiwa Computer Co., Ltd.

Ubiteq, Inc.

Kokopelli, Inc.

GRCS, Inc.

Why is D.I. System Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 16.41%

Healthy long term growth as Net Sales has grown by an annual rate of 11.13% and Operating profit at 17.55%
Company has very low debt and has enough cash to service the debt requirements

Negative results in Mar 26

INTEREST(HY) At JPY 0.78 MM has Grown at 252.94%
NET PROFIT(HY) At JPY 100.96 MM has Grown at -31.85%
ROCE(HY) Lowest at 13.42%

With ROE of 14.21%, it has a very attractive valuation with a 1.78 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 -0.54%, its profits have fallen by -5%

Below par performance in long term as well as near term

Along with generating -0.54% 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 D.I. System Co., Ltd. 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 D.I. System Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

D.I. System Co., Ltd.

-0.54%

0.72

20.22%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.13%

EBIT Growth (5y)

17.55%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.58

Sales to Capital Employed (avg)

4.39

Tax Ratio

28.30%

Dividend Payout Ratio

30.64%

Pledged Shares

Institutional Holding

ROCE (avg)

63.58%

ROE (avg)

16.41%

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

1.78

EV to EBIT

6.01

EV to EBITDA

4.91

EV to Capital Employed

2.95

EV to Sales

0.26

PEG Ratio

Dividend Yield

ROCE (Latest)

49.05%

ROE (Latest)

14.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.67% (YoY

CASH AND EQV(HY)

Highest at JPY 2,346.18 MM

-15What is not working for the Company

INTEREST(HY)

At JPY 0.78 MM has Grown at 252.94%

NET PROFIT(HY)

At JPY 100.96 MM has Grown at -31.85%

ROCE(HY)

Lowest at 13.42%

INTEREST COVERAGE RATIO(Q)

Lowest at 17,573.97

DEBT-EQUITY RATIO (HY)

Highest at -54.09 %

Here's what is working for D.I. System Co., Ltd.

Cash and Eqv

Highest at JPY 2,346.18 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 1.67% (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 20.33 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 D.I. System Co., Ltd.

Interest

At JPY 0.78 MM has Grown at 252.94%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 17,573.97

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 100.96 MM has Grown at -31.85%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -54.09 %

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