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

Toyokumo, Inc.

Drecom Co., Ltd.

Temairazu, Inc.

Ubicom Holdings, Inc.

Asia Air Survey Co., Ltd.

eSOL Co., Ltd.

Yuke's Co., Ltd.

Japan Data Science Consortium Co., Ltd.

AI inside, Inc.

Neural Group, Inc.

T&S, Inc.

Why is eSOL Co., Ltd. ?

Weak Long Term Fundamental Strength with a 5.01% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 6.76% and Operating profit at 5.01% over the last 5 years

Flat results in Jun 26

INTEREST(9M) At JPY 0.84 MM has Grown at inf%
PRE-TAX PROFIT(Q) At JPY 53.94 MM has Fallen at -76.59%
NET PROFIT(Q) At JPY 43.39 MM has Fallen at -74.8%

With ROE of 11.40%, it has a fair valuation with a 2.74 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 35.81%, its profits have risen by 9.2% ; the PEG ratio of the company is 2.6

Underperformed the market in the last 1 year

The stock has generated a return of 35.81% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 58.07%

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.

35.81%

-0.28

57.02%

Japan Nikkei 225

58.07%

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)

6.76%

EBIT Growth (5y)

5.01%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.58

Sales to Capital Employed (avg)

2.15

Tax Ratio

25.16%

Dividend Payout Ratio

17.64%

Pledged Shares

Institutional Holding

ROCE (avg)

16.75%

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

2.74

EV to EBIT

15.87

EV to EBITDA

13.79

EV to Capital Employed

4.46

EV to Sales

1.09

PEG Ratio

2.61

Dividend Yield

ROCE (Latest)

28.13%

ROE (Latest)

11.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

7What is working for the Company

NET PROFIT(HY)

At JPY 256.79 MM has Grown at 98.98%

RAW MATERIAL COST(Y)

Fallen by -9.25% (YoY

-12What is not working for the Company

INTEREST(9M)

At JPY 0.84 MM has Grown at inf%

PRE-TAX PROFIT(Q)

At JPY 53.94 MM has Fallen at -76.59%

NET PROFIT(Q)

At JPY 43.39 MM has Fallen at -74.8%

INTEREST COVERAGE RATIO(Q)

Lowest at 25,831.61

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

Raw Material Cost

Fallen by -9.25% (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 eSOL Co., Ltd.

Interest

At JPY 0.84 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 53.94 MM has Fallen at -76.59%

over average net sales of the previous four periods of JPY 230.36 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 43.39 MM has Fallen at -74.8%

over average net sales of the previous four periods of JPY 172.17 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 25,831.61

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Non Operating Income

Highest at JPY 0.21 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income