ScoreWhy is EM Systems Co., Ltd. ?
1
High Management Efficiency with a high ROE of 11.69%
2
Company has very low debt and has enough cash to service the debt requirements
3
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 11.69%
4
The company has declared Positive results for the last 3 consecutive quarters
- NET SALES(9M) At JPY 19,231 MM has Grown at 19.11%
- NET PROFIT(HY) At JPY 1,673.55 MM has Grown at 69.73%
- ROCE(HY) Highest at 14.9%
5
With ROE of 19.84%, it has a very attractive valuation with a 2.69 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 -1.13%, its profits have risen by 94.2% ; the PEG ratio of the company is 0.1
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -1.13% 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 ReportHow much should you hold?
- Overall Portfolio exposure to EM Systems 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 EM Systems Co., Ltd. for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
EM Systems Co., Ltd.
-1.13%
0.95
26.18%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
14.57%
EBIT Growth (5y)
18.24%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.42
Sales to Capital Employed (avg)
1.01
Tax Ratio
33.21%
Dividend Payout Ratio
101.33%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
23.87%
ROE (avg)
11.69%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
2.69
EV to EBIT
8.60
EV to EBITDA
6.73
EV to Capital Employed
3.90
EV to Sales
1.75
PEG Ratio
0.13
Dividend Yield
NA
ROCE (Latest)
45.32%
ROE (Latest)
19.84%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
NET SALES(9M)
At JPY 19,231 MM has Grown at 19.11%
NET PROFIT(HY)
At JPY 1,673.55 MM has Grown at 69.73%
ROCE(HY)
Highest at 14.9%
DIVIDEND PAYOUT RATIO(Y)
Highest at 253.62%
CASH AND EQV(HY)
Highest at JPY 20,160 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 14.46%
DEBTORS TURNOVER RATIO(HY)
Highest at 7.81%
DIVIDEND PER SHARE(HY)
Highest at JPY 7.81
-11What is not working for the Company
NET SALES(Q)
At JPY 5,435 MM has Fallen at -16.32%
PRE-TAX PROFIT(Q)
At JPY 692 MM has Fallen at -53.76%
NET PROFIT(Q)
At JPY 504.15 MM has Fallen at -48.82%
RAW MATERIAL COST(Y)
Grown by 8.26% (YoY
OPERATING PROFIT(Q)
Lowest at JPY 856 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 15.75 %
Here's what is working for EM Systems Co., Ltd.
Cash and Eqv
Highest at JPY 20,160 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 14.46%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 7.81%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Dividend per share
Highest at JPY 7.81
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Dividend Payout Ratio
Highest at 253.62%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for EM Systems Co., Ltd.
Net Sales
At JPY 5,435 MM has Fallen at -16.32%
over average net sales of the previous four periods of JPY 6,495 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (JPY MM)
Pre-Tax Profit
At JPY 692 MM has Fallen at -53.76%
over average net sales of the previous four periods of JPY 1,496.5 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 504.15 MM has Fallen at -48.82%
over average net sales of the previous four periods of JPY 985 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Operating Profit
Lowest at JPY 856 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 15.75 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Raw Material Cost
Grown by 8.26% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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