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.

Temairazu, Inc.

Drecom Co., Ltd.

Yuke's Co., Ltd.

Ubicom Holdings, Inc.

Japan Data Science Consortium Co., Ltd.

Asia Air Survey Co., Ltd.

eSOL Co., Ltd.

AI inside, Inc.

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 6.05% and Operating profit at 3.61% over the last 5 years

Flat results in Mar 26

INTEREST(9M) At JPY 0.52 MM has Grown at inf%
INTEREST COVERAGE RATIO(Q) Lowest at 98,299.19
DEBT-EQUITY RATIO (HY) Highest at -49.71 %

With ROE of 9.95%, it has a fair valuation with a 1.94 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 77.91%, its profits have fallen by -34.5%

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.

66.73%

0.15

55.03%

Japan Nikkei 225

71.75%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.05%

EBIT Growth (5y)

3.61%

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

27.15%

Dividend Payout Ratio

17.64%

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

1.94

EV to EBIT

10.24

EV to EBITDA

9.08

EV to Capital Employed

2.97

EV to Sales

0.69

PEG Ratio

Dividend Yield

ROCE (Latest)

28.99%

ROE (Latest)

9.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

9What is working for the Company

NET PROFIT(HY)

Higher at JPY 546.03 MM

RAW MATERIAL COST(Y)

Fallen by -1.98% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 37.86 times

-8What is not working for the Company

INTEREST(9M)

At JPY 0.52 MM has Grown at inf%

INTEREST COVERAGE RATIO(Q)

Lowest at 98,299.19

DEBT-EQUITY RATIO (HY)

Highest at -49.71 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.31 times

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

Net Profit

Higher at JPY 546.03 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (JPY MM)

Net Profit

At JPY 546.03 MM has Grown at 63.7%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 37.86 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 -1.98% (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 0.52 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 98,299.19

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -49.71 %

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 5.31 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at JPY 0.15 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income