DIGITAL HEARTS HOLDINGS Co., Ltd. (3676) 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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Core Corp.

E-Guardian, Inc.

DIGITAL HEARTS HOLDINGS Co., Ltd.

Remixpoint, Inc.

Why is DIGITAL HEARTS HOLDINGS Co., Ltd. ?

The company has declared negative results for the last 2 consecutive quarters

INVENTORY TURNOVER RATIO(HY) Lowest at 428.99 times
INTEREST COVERAGE RATIO(Q) Lowest at 3,561.12
RAW MATERIAL COST(Y) Grown by 7.4% (YoY)

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -28.11% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

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 DIGITAL HEARTS HOLDINGS Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

DIGITAL HEARTS HOLDINGS Co., Ltd.

-28.11%

-1.32

26.55%

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)

12.03%

EBIT Growth (5y)

14.18%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

2.65

Tax Ratio

59.26%

Dividend Payout Ratio

81.42%

Pledged Shares

Institutional Holding

ROCE (avg)

34.71%

ROE (avg)

22.00%

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

2.32

EV to EBIT

7.09

EV to EBITDA

5.42

EV to Capital Employed

2.61

EV to Sales

0.54

PEG Ratio

0.37

Dividend Yield

ROCE (Latest)

36.78%

ROE (Latest)

22.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

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

3What is working for the Company

ROCE(HY)

Highest at 12.72%

DIVIDEND PER SHARE(HY)

Highest at JPY 6.9

-28What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 428.99 times

INTEREST COVERAGE RATIO(Q)

Lowest at 3,561.12

RAW MATERIAL COST(Y)

Grown by 7.4% (YoY

INTEREST(Q)

Highest at JPY 16.86 MM

OPERATING PROFIT(Q)

Lowest at JPY 600.23 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.1 %

PRE-TAX PROFIT(Q)

Lowest at JPY 255.78 MM

NET PROFIT(Q)

Lowest at JPY 181.38 MM

Here's what is working for DIGITAL HEARTS HOLDINGS Co., Ltd.

Dividend per share

Highest at JPY 6.9

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Depreciation

Highest at JPY 315.63 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 315.63 MM has Grown at 40.01%

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 DIGITAL HEARTS HOLDINGS Co., Ltd.

Interest

At JPY 16.86 MM has Grown at 34.8%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 3,561.12

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At JPY 255.78 MM has Fallen at -53.77%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 181.38 MM has Fallen at -63.94%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 428.99 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at JPY 16.86 MM

in the last five periods and Increased by 34.8% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 600.23 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 6.1 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 255.78 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 181.38 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Raw Material Cost

Grown by 7.4% (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