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.

PKSHA Technology, Inc.

Why is EM Systems Co., Ltd. ?

Weak Long Term Fundamental Strength with a 11.64% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 11.64% of over the last 5 years

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

NET SALES(HY) At JPY 10,434 MM has Grown at -14.12%
NET PROFIT(HY) At JPY 772.7 MM has Grown at -53.83%
ROCE(HY) Lowest at 7.48%

Below par performance in long term as well as near term

Along with generating -27.47% 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 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, Low Return

Absolute

Risk Adjusted

Volatility

EM Systems Co., Ltd.

-25.86%

-0.43

26.63%

Japan Nikkei 225

57.85%

1.98

29.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.16%

EBIT Growth (5y)

11.64%

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

34.34%

Dividend Payout Ratio

110.05%

Pledged Shares

Institutional Holding

ROCE (avg)

24.72%

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

1.83

EV to EBIT

12.10

EV to EBITDA

7.91

EV to Capital Employed

2.25

EV to Sales

1.30

PEG Ratio

Dividend Yield

ROCE (Latest)

18.55%

ROE (Latest)

9.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

3What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 21.08 times

RAW MATERIAL COST(Y)

Fallen by -11.78% (YoY

-22What is not working for the Company

NET SALES(HY)

At JPY 10,434 MM has Grown at -14.12%

NET PROFIT(HY)

At JPY 772.7 MM has Grown at -53.83%

ROCE(HY)

Lowest at 7.48%

INTEREST COVERAGE RATIO(Q)

Lowest at 48,750

CASH AND EQV(HY)

Lowest at JPY 13,716 MM

DEBT-EQUITY RATIO (HY)

Highest at -30.96 %

INTEREST(Q)

Highest at JPY 2 MM

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

Inventory Turnover Ratio

Highest at 21.08 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

Raw Material Cost

Fallen by -11.78% (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 EM Systems Co., Ltd.

Net Sales

At JPY 10,434 MM has Grown at -14.12%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Net Profit

At JPY 772.7 MM has Grown at -53.83%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 2 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 48,750

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 2 MM

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

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 13,716 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -30.96 %

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