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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Pro-Ship, Inc.

Cybertrust Japan Co. Ltd.

Japan Data Science Consortium Co., Ltd.

FINDEX, Inc.

BrainPad, Inc.

Geniee, Inc.

gumi, Inc.

AI inside, Inc.

Drecom Co., Ltd.

RPA Holdings, Inc.

T&S, Inc.

Why is Drecom Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.51% over the last 5 years

Negative results in Jun 25

PRE-TAX PROFIT(Q) At JPY -107.61 MM has Fallen at -907.45%
NET PROFIT(Q) At JPY -235.61 MM has Fallen at -791.75%
ROCE(HY) Lowest at -63.26%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -44.85%, its profits have fallen by -83.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -44.85% 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 Software Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Drecom Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Drecom Co., Ltd.

-44.85%

-0.86

48.74%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.51%

EBIT Growth (5y)

-28.91%

EBIT to Interest (avg)

35.89

Debt to EBITDA (avg)

0.35

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

1.12

Tax Ratio

7.58%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

51.23%

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

113

Industry P/E

Price to Book Value

3.32

EV to EBIT

147.02

EV to EBITDA

25.79

EV to Capital Employed

2.99

EV to Sales

1.30

PEG Ratio

Dividend Yield

ROCE (Latest)

2.03%

ROE (Latest)

2.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

21What is working for the Company

NET PROFIT(HY)

Higher at JPY 122.67 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 7.61%

NET SALES(Q)

Highest at JPY 4,466.91 MM

-19What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY -107.61 MM has Fallen at -907.45%

NET PROFIT(Q)

At JPY -235.61 MM has Fallen at -791.75%

ROCE(HY)

Lowest at -63.26%

INTEREST(Q)

Highest at JPY 20.92 MM

EPS(Q)

Lowest at JPY -62.6

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

Net Sales

At JPY 4,466.91 MM has Grown at 41.19%

over average net sales of the previous four periods of JPY 3,163.8 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

Highest at JPY 4,466.91 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debtors Turnover Ratio

Highest at 7.61%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 428.75 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 428.75 MM has Grown at 81.05%

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 Drecom Co., Ltd.

Pre-Tax Profit

At JPY -107.61 MM has Fallen at -907.45%

over average net sales of the previous four periods of JPY 13.33 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -235.61 MM has Fallen at -791.75%

over average net sales of the previous four periods of JPY 34.06 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

Highest at JPY 20.92 MM

in the last five periods and Increased by 5.23% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

EPS

Lowest at JPY -62.6

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)