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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Toyokumo, Inc.

Asia Air Survey Co., Ltd.

Ubicom Holdings, Inc.

Temairazu, Inc.

Japan Data Science Consortium Co., Ltd.

Yuke's Co., Ltd.

AI inside, Inc.

eSOL Co., Ltd.

Drecom Co., Ltd.

Neural Group, Inc.

T&S, Inc.

Why is eSOL Co., Ltd. ?

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

The company has declared negative results in Mar'2025 after 5 consecutive positive quarters

RAW MATERIAL COST(Y) Grown by 30.04% (YoY)
CASH AND EQV(HY) Lowest at JPY 6,216.77 MM
NET SALES(Q) Lowest at JPY 2,760.8 MM

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -19.45% 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 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 eSOL Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

eSOL Co., Ltd.

-18.88%

-0.77

53.13%

Japan Nikkei 225

28.54%

1.14

25.81%

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)

2.03

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

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bullish

OBV

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

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 104.07%

DEBT-EQUITY RATIO (HY)

Lowest at -66.05 %

-21What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 30.04% (YoY

CASH AND EQV(HY)

Lowest at JPY 6,216.77 MM

NET SALES(Q)

Lowest at JPY 2,760.8 MM

OPERATING PROFIT(Q)

Lowest at JPY 41.9 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.52 %

PRE-TAX PROFIT(Q)

Lowest at JPY 28.48 MM

NET PROFIT(Q)

Lowest at JPY 16.84 MM

EPS(Q)

Lowest at JPY 1.44

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

Debt-Equity Ratio

Lowest at -66.05 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 104.07%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

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

Pre-Tax Profit

At JPY 28.48 MM has Fallen at -86.83%

over average net sales of the previous four periods of JPY 216.27 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 16.84 MM has Fallen at -89.32%

over average net sales of the previous four periods of JPY 157.65 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 2,760.8 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 41.9 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 1.52 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 28.48 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 16.84 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 1.44

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 6,216.77 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 30.04% (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

Non Operating Income

Highest at JPY 0.13 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income