Drecom Co., Ltd. (3793) 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

Drecom Co., Ltd.

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Pro-Ship, Inc.

Japan Data Science Consortium Co., Ltd.

RPA Holdings, Inc.

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T&S, Inc.

Why is Drecom Co., Ltd. ?

The company has declared Positive results for the last 3 consecutive quarters

NET PROFIT(HY) Higher at JPY 2,670.36 MM
ROCE(HY) Highest at 56.95%
RAW MATERIAL COST(Y) Fallen by -27.41% (YoY)

With ROE of 5.76%, it has a expensive valuation with a 3.66 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 -9.88%, its profits have risen by 335.5% ; the PEG ratio of the company is 0.2

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Drecom Co., Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

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

Is Drecom Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Drecom Co., Ltd.

-9.88%

-1.19

30.74%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.56%

EBIT Growth (5y)

-33.18%

EBIT to Interest (avg)

23.53

Debt to EBITDA (avg)

0.35

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

1.53

Tax Ratio

74.76%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

32.44%

ROE (avg)

22.36%

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

3.66

EV to EBIT

50.89

EV to EBITDA

8.74

EV to Capital Employed

3.22

EV to Sales

0.68

PEG Ratio

0.19

Dividend Yield

ROCE (Latest)

6.33%

ROE (Latest)

5.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

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

18What is working for the Company

NET PROFIT(HY)

Higher at JPY 2,670.36 MM

ROCE(HY)

Highest at 56.95%

RAW MATERIAL COST(Y)

Fallen by -27.41% (YoY

CASH AND EQV(HY)

Highest at JPY 11,828.76 MM

DEBT-EQUITY RATIO (HY)

Lowest at -52.46 %

DEBTORS TURNOVER RATIO(HY)

Highest at 7.96 times

OPERATING PROFIT MARGIN(Q)

Highest at 18.07 %

-2What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 512.2 MM has Fallen at -29.09%

NET PROFIT(Q)

At JPY 323.33 MM has Fallen at -40.31%

Here's what is working for Drecom Co., Ltd.

Operating Profit Margin

Highest at 18.07 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at JPY 11,828.76 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -52.46 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 7.96 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -27.41% (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

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

Pre-Tax Profit

At JPY 512.2 MM has Fallen at -29.09%

over average net sales of the previous four periods of JPY 722.33 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 323.33 MM has Fallen at -40.31%

over average net sales of the previous four periods of JPY 541.69 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)