Flect Co., 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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Flect Co., Ltd.

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Cube System Inc.

ISB Corp.

Tecnos Japan Inc.

Why is Flect Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 21.06%

Healthy long term growth as Net Sales has grown by an annual rate of 142.74% and Operating profit at 263.31%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 76.66

With ROE of 26.48%, it has a attractive valuation with a 4.79 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 -3.41%, its profits have risen by 63.6%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Flect Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Flect Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Flect Co., Ltd.

-3.41%

-0.63

45.20%

Japan Nikkei 225

27.57%

1.07

25.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

142.74%

EBIT Growth (5y)

263.31%

EBIT to Interest (avg)

76.66

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.59

Sales to Capital Employed (avg)

2.59

Tax Ratio

33.37%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

66.35%

ROE (avg)

21.06%

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

4.79

EV to EBIT

10.53

EV to EBITDA

9.70

EV to Capital Employed

10.28

EV to Sales

1.44

PEG Ratio

Dividend Yield

ROCE (Latest)

97.59%

ROE (Latest)

26.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

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

7What is working for the Company

NET PROFIT(HY)

At JPY 325.34 MM has Grown at 80.66%

RAW MATERIAL COST(Y)

Fallen by -3.08% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -52.1 %

INVENTORY TURNOVER RATIO(HY)

Highest at 310.48%

DEBTORS TURNOVER RATIO(HY)

Highest at 5.31%

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 8,595.1

NET SALES(Q)

Lowest at JPY 1,809.52 MM

OPERATING PROFIT(Q)

Lowest at JPY 131.59 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.27 %

PRE-TAX PROFIT(Q)

Lowest at JPY 117.85 MM

NET PROFIT(Q)

Lowest at JPY 71.99 MM

EPS(Q)

Lowest at JPY 11.25

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

Debt-Equity Ratio

Lowest at -52.1 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 310.48%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.31%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -3.08% (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 Flect Co., Ltd.

Interest Coverage Ratio

Lowest at 8,595.1

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 1,809.52 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 131.59 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 7.27 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 117.85 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Fallen at -33.85%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 71.99 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 11.25

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)