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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

D.I. System Co., Ltd.

SIOS Corp.

e-Seikatsu Co., Ltd.

Daiwa Computer Co., Ltd.

Ubiteq, Inc.

Gooddays Holdings, Inc.

GRCS, Inc.

AltPlus Inc.

DIGITAL PLUS, Inc.

Kokopelli, Inc.

and Factory, 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 10.40% and Operating profit at 10.28%
Company has very low debt and has enough cash to service the debt requirements

With ROE of 15.74%, it has a very attractive valuation with a 1.87 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 10.33%, its profits have risen by 7.8% ; the PEG ratio of the company is 1.5

Real-Time Research Report

Verdict Report

How much should you buy?

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.

11.11%

0.44

28.58%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.40%

EBIT Growth (5y)

10.28%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.58

Sales to Capital Employed (avg)

4.50

Tax Ratio

28.30%

Dividend Payout Ratio

30.06%

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

1.87

EV to EBIT

5.88

EV to EBITDA

4.96

EV to Capital Employed

3.09

EV to Sales

0.28

PEG Ratio

1.53

Dividend Yield

ROCE (Latest)

52.49%

ROE (Latest)

15.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.32% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 517.88%

NET SALES(Q)

At JPY 1,992.17 MM has Grown at 15.05%

-12What is not working for the Company

ROCE(HY)

Lowest at 16.13%

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.16%

OPERATING PROFIT(Q)

Lowest at JPY 67.75 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.4 %

PRE-TAX PROFIT(Q)

Lowest at JPY 50.15 MM

NET PROFIT(Q)

Lowest at JPY 28.65 MM

EPS(Q)

Lowest at JPY 9.82

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

Net Sales

Highest at JPY 1,992.17 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 1,992.17 MM has Grown at 15.05%

over average net sales of the previous four periods of JPY 1,731.55 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 517.88%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -4.32% (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 17.54 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.

Pre-Tax Profit

At JPY 50.15 MM has Fallen at -39.56%

over average net sales of the previous four periods of JPY 82.98 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 28.65 MM has Fallen at -51.84%

over average net sales of the previous four periods of JPY 59.49 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit

Lowest at JPY 67.75 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 3.4 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 50.15 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 28.65 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 9.82

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Lowest at 7.16%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio