DM SOLUTIONS Co., Ltd. (6549) 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

Benefit Japan Co., Ltd.

IPS Inc. /Japan/

AI CROSS, Inc.

DM SOLUTIONS Co., Ltd.

Fibergate, Inc.

U-NEXT HOLDINGS Co., Ltd.

Accrete, Inc.

Techfirm Holdings, Inc.

Kanda Tsushinki Co., Ltd.

Giga Prize Co., Ltd.

JTOWER, Inc.

Why is DM SOLUTIONS Co., Ltd. ?

With a growth in Net Sales of 3.48%, the company declared Outstanding results in Jun 26

The company has declared positive results for the last 3 consecutive quarters
NET PROFIT(HY) At JPY 500.44 MM has Grown at 88.11%
ROCE(HY) Highest at 20.63%
NET SALES(Q) Highest at JPY 8,298.18 MM

With ROE of 15.45%, it has a very expensive valuation with a 1.69 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 51.60%, its profits have risen by 29.1% ; the PEG ratio of the company is 0.4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to DM SOLUTIONS Co., Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is DM SOLUTIONS Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

DM SOLUTIONS Co., Ltd.

39.43%

-0.13

56.89%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.57%

EBIT Growth (5y)

1.69%

EBIT to Interest (avg)

47.74

Debt to EBITDA (avg)

0.68

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

3.83

Tax Ratio

30.67%

Dividend Payout Ratio

15.52%

Pledged Shares

Institutional Holding

ROCE (avg)

15.48%

ROE (avg)

12.67%

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

1.69

EV to EBIT

9.43

EV to EBITDA

6.59

EV to Capital Employed

1.53

EV to Sales

0.30

PEG Ratio

0.38

Dividend Yield

ROCE (Latest)

16.25%

ROE (Latest)

15.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

23What is working for the Company

NET PROFIT(HY)

At JPY 500.44 MM has Grown at 88.11%

ROCE(HY)

Highest at 20.63%

NET SALES(Q)

Highest at JPY 8,298.18 MM

CASH AND EQV(HY)

Highest at JPY 3,061.83 MM

DEBT-EQUITY RATIO (HY)

Lowest at 17.61 %

INVENTORY TURNOVER RATIO(HY)

Highest at 61.62 times

DEBTORS TURNOVER RATIO(HY)

Highest at 10.05 times

-4What is not working for the Company

INTEREST(HY)

At JPY 10.91 MM has Grown at 10.31%

RAW MATERIAL COST(Y)

Grown by 8.7% (YoY

Here's what is working for DM SOLUTIONS Co., Ltd.

Net Sales

Highest at JPY 8,298.18 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

At JPY 8,298.18 MM has Grown at 29.86%

over average net sales of the previous four periods of JPY 6,390.05 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Profit

At JPY 500.44 MM has Grown at 88.11%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 3,061.83 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 17.61 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 61.62 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 10.05 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for DM SOLUTIONS Co., Ltd.

Interest

At JPY 10.91 MM has Grown at 10.31%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 8.7% (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