Finatext Holdings Ltd. () 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

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Why is Finatext Holdings Ltd. ?

Poor Management Efficiency with a low ROE of 2.65%

The company has been able to generate a Return on Equity (avg) of 2.65% signifying low profitability per unit of shareholders funds

Healthy long term growth as Net Sales has grown by an annual rate of 41.98% and Operating profit at 121.45%

With a growth in Operating Profit of 307.39%, the company declared Very Positive results in Dec 25

PRE-TAX PROFIT(Q) At JPY 441.33 MM has Grown at 404%
ROCE(HY) Highest at 10.87%
RAW MATERIAL COST(Y) Fallen by -5.5% (YoY)

With ROE of 7.66%, it has a attractive valuation with a 7.22 Price to Book Value

Over the past year, while the stock has generated a return of 7.45%, its profits have risen by 2669.6% ; the PEG ratio of the company is 0

Underperformed the market in the last 1 year

The stock has generated a return of 7.45% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.94%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Finatext Holdings 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 Finatext Holdings Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Finatext Holdings Ltd.

7.45%

0.13

66.17%

Japan Nikkei 225

38.94%

1.38

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

41.98%

EBIT Growth (5y)

121.45%

EBIT to Interest (avg)

-50.78

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

0.64

Tax Ratio

26.05%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.75%

ROE (avg)

2.65%

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

7.22

EV to EBIT

66.13

EV to EBITDA

58.80

EV to Capital Employed

10.06

EV to Sales

8.16

PEG Ratio

0.04

Dividend Yield

ROCE (Latest)

15.21%

ROE (Latest)

7.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

21What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 441.33 MM has Grown at 404%

ROCE(HY)

Highest at 10.87%

RAW MATERIAL COST(Y)

Fallen by -5.5% (YoY

NET SALES(Q)

Highest at JPY 2,817.52 MM

OPERATING PROFIT(Q)

Highest at JPY 508.6 MM

NET PROFIT(Q)

At JPY 284.97 MM has Grown at 128.63%

-10What is not working for the Company

INTEREST(HY)

At JPY 14.41 MM has Grown at 89.53%

DEBT-EQUITY RATIO (HY)

Highest at -22.65 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.77 times

Here's what is working for Finatext Holdings Ltd.

Pre-Tax Profit

At JPY 441.33 MM has Grown at 404%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Sales

At JPY 2,817.52 MM has Grown at 61.85%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

Highest at JPY 2,817.52 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 508.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Net Profit

At JPY 284.97 MM has Grown at 128.63%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -5.5% (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 55.15 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 55.15 MM has Grown at 38.6%

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 Finatext Holdings Ltd.

Interest

At JPY 14.41 MM has Grown at 89.53%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -22.65 %

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 1.77 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio