ScoreWhy is Encourage Technologies Co., Ltd. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Net Sales has grown by an annual rate of 5.34% and Operating profit at 12.88% over the last 5 years
3
Flat results in Dec 25
- RAW MATERIAL COST(Y) Grown by 11.86% (YoY)
- DEBTORS TURNOVER RATIO(HY) Lowest at 12.17 times
4
With ROE of 6.27%, it has a very attractive valuation with a 1.22 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 6.98%, its profits have risen by 0.6% ; the PEG ratio of the company is 19.4
5
Underperformed the market in the last 1 year
- The stock has generated a return of 6.98% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Encourage Technologies 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 Encourage Technologies Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Encourage Technologies Co., Ltd.
6.98%
0.49
20.98%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.34%
EBIT Growth (5y)
12.88%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-1.06
Sales to Capital Employed (avg)
0.73
Tax Ratio
27.35%
Dividend Payout Ratio
75.60%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
6.00%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
1.22
EV to EBIT
1.92
EV to EBITDA
0.98
EV to Capital Employed
-2.96
EV to Sales
0.23
PEG Ratio
19.43
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
6.27%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
ROCE(HY)
Highest at 6.97%
CASH AND EQV(HY)
Highest at JPY 7,943.16 MM
-2What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 11.86% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 12.17 times
Here's what is working for Encourage Technologies Co., Ltd.
Cash and Eqv
Highest at JPY 7,943.16 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Depreciation
At JPY 46.88 MM has Grown at 58.97%
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 Encourage Technologies Co., Ltd.
Debtors Turnover Ratio
Lowest at 12.17 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 11.86% (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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