DLE, Inc. (3686) 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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DLE, Inc.

Tokyo Nissan Computer System Co., Ltd.

Why is DLE, Inc. ?

Poor Management Efficiency with a low ROE of 0%

The company has reported losses. Due to this company has reported negative ROE

Poor long term growth as Net Sales has grown by an annual rate of 19.96% and Operating profit at 4.64% over the last 5 years

Flat results in Dec 25

INTEREST(HY) At JPY 12.67 MM has Grown at 11,629.63%
NET SALES(9M) At JPY 1,221.58 MM has Grown at -10.89%
ROCE(HY) Lowest at -24.63%

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -21.01%, its profits have fallen by -44.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -21.01% 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 DLE, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

DLE, Inc.

-100.0%

-0.52

67.09%

Japan Nikkei 225

40.96%

1.35

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.96%

EBIT Growth (5y)

4.64%

EBIT to Interest (avg)

-443.35

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

0.79

Tax Ratio

0.74%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.50

EV to EBIT

-13.17

EV to EBITDA

-15.77

EV to Capital Employed

4.63

EV to Sales

2.92

PEG Ratio

Dividend Yield

ROCE (Latest)

-35.17%

ROE (Latest)

-37.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

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

8What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 19.53 MM has Grown at 132.44%

RAW MATERIAL COST(Y)

Fallen by -15.54% (YoY

NET PROFIT(Q)

At JPY 13.19 MM has Grown at 128.42%

-13What is not working for the Company

INTEREST(HY)

At JPY 12.67 MM has Grown at 11,629.63%

NET SALES(9M)

At JPY 1,221.58 MM has Grown at -10.89%

ROCE(HY)

Lowest at -24.63%

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.19 times

Here's what is working for DLE, Inc.

Pre-Tax Profit

At JPY 19.53 MM has Grown at 132.44%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 13.19 MM has Grown at 128.42%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -15.54% (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

At JPY 10.39 MM has Grown at 31.88%

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 DLE, Inc.

Interest

At JPY 12.67 MM has Grown at 11,629.63%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 1,221.58 MM has Grown at -10.89%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Inventory Turnover Ratio

Lowest at 8.19 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio