EM Systems Co., Ltd. (4820) 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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EM Systems Co., Ltd.

Why is EM Systems Co., Ltd. ?

With a fall in EPS of -74.73%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 2 consecutive quarters
ROCE(HY) Lowest at 7.52%
RAW MATERIAL COST(Y) Grown by 20.38% (YoY)
CASH AND EQV(HY) Lowest at JPY 14,980 MM

Below par performance in long term as well as near term

Along with generating -33.29% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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 EM Systems Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

EM Systems Co., Ltd.

-35.01%

-0.77

25.71%

Japan Nikkei 225

69.64%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.93%

EBIT Growth (5y)

21.58%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

1.09

Tax Ratio

33.21%

Dividend Payout Ratio

110.05%

Pledged Shares

Institutional Holding

ROCE (avg)

23.87%

ROE (avg)

11.69%

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

2.32

EV to EBIT

10.89

EV to EBITDA

8.06

EV to Capital Employed

3.05

EV to Sales

1.69

PEG Ratio

Dividend Yield

ROCE (Latest)

28.01%

ROE (Latest)

13.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

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

4What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 19.13 times

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

-36What is not working for the Company

ROCE(HY)

Lowest at 7.52%

RAW MATERIAL COST(Y)

Grown by 20.38% (YoY

CASH AND EQV(HY)

Lowest at JPY 14,980 MM

DEBT-EQUITY RATIO (HY)

Highest at -33.49 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.03 times

NET SALES(Q)

Lowest at JPY 5,039 MM

OPERATING PROFIT(Q)

Lowest at JPY 487 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.66 %

PRE-TAX PROFIT(Q)

Lowest at JPY 383 MM

NET PROFIT(Q)

Lowest at JPY 209.27 MM

Here's what is working for EM Systems Co., Ltd.

Inventory Turnover Ratio

Highest at 19.13 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Net Sales

At JPY 5,039 MM has Fallen at -14.8%

over average net sales of the previous four periods of JPY 5,914.5 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 383 MM has Fallen at -64.41%

over average net sales of the previous four periods of JPY 1,076 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 209.27 MM has Fallen at -70.52%

over average net sales of the previous four periods of JPY 709.96 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 5,039 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 487 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 9.66 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 383 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 209.27 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Cash and Eqv

Lowest at JPY 14,980 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -33.49 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 6.03 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 20.38% (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