eSOL Co., Ltd. (4420) 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

Temairazu, Inc.

Japan Data Science Consortium Co., Ltd.

Toyokumo, Inc.

Drecom Co., Ltd.

Asia Air Survey Co., Ltd.

Ubicom Holdings, Inc.

eSOL Co., Ltd.

AI inside, Inc.

Yuke's Co., Ltd.

Neural Group, Inc.

T&S, Inc.

Why is eSOL Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 3.87% and Operating profit at 3.87% over the last 5 years

With a growth in Net Profit of 164.36%, the company declared Very Positive results in Dec 25

RAW MATERIAL COST(Y) Fallen by -1.2% (YoY)
INVENTORY TURNOVER RATIO(HY) Highest at 40.16 times
NET SALES(Q) Highest at JPY 3,502.81 MM

With ROE of 12.65%, it has a attractive valuation with a 2.10 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 -16.96%, its profits have risen by 24.7% ; the PEG ratio of the company is 0.5

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -16.96% 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 hold?

Overall Portfolio exposure to eSOL 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 eSOL Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

eSOL Co., Ltd.

-16.96%

-0.69

56.97%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.87%

EBIT Growth (5y)

3.87%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.58

Sales to Capital Employed (avg)

2.09

Tax Ratio

27.15%

Dividend Payout Ratio

12.02%

Pledged Shares

Institutional Holding

ROCE (avg)

20.13%

ROE (avg)

6.76%

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

2.10

EV to EBIT

9.30

EV to EBITDA

8.40

EV to Capital Employed

3.62

EV to Sales

0.65

PEG Ratio

0.49

Dividend Yield

ROCE (Latest)

38.92%

ROE (Latest)

12.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

15What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.2% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 40.16 times

NET SALES(Q)

Highest at JPY 3,502.81 MM

OPERATING PROFIT(Q)

Highest at JPY 503.12 MM

OPERATING PROFIT MARGIN(Q)

Highest at 14.36 %

PRE-TAX PROFIT(Q)

Highest at JPY 466.82 MM

NET PROFIT(Q)

Highest at JPY 332.63 MM

EPS(Q)

Highest at JPY 17.22

-7What is not working for the Company

INTEREST(9M)

At JPY 0.27 MM has Grown at inf%

CASH AND EQV(HY)

Lowest at JPY 6,362.73 MM

DEBT-EQUITY RATIO (HY)

Highest at -52.39 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.06 times

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

Pre-Tax Profit

At JPY 466.82 MM has Grown at 185.32%

over average net sales of the previous four periods of JPY 163.61 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 332.63 MM has Grown at 179.4%

over average net sales of the previous four periods of JPY 119.05 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 3,502.81 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 3,502.81 MM has Grown at 19.42%

over average net sales of the previous four periods of JPY 2,933.24 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 503.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 14.36 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 466.82 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 332.63 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 17.22

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 40.16 times

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 -1.2% (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

Depreciation

Highest at JPY 45.04 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 45.04 MM has Grown at 120.37%

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 eSOL Co., Ltd.

Interest

At JPY 0.27 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 6,362.73 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -52.39 %

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 5.06 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio