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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Startia Holdings, Inc.

Cross Cat Co., Ltd.

Flect Co., Ltd.

SERAKU Co., Ltd.

Ad-Sol Nissin Corp.

Cube System Inc.

NEOJAPAN, Inc.

HIMACS Ltd.

Focus Systems Corp.

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 139.69% and Operating profit at 281.90%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 76.66

With a growth in Operating Profit of 40.37%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
INTEREST COVERAGE RATIO(Q) Highest at 34,300.82
RAW MATERIAL COST(Y) Fallen by -7.22% (YoY)
INVENTORY TURNOVER RATIO(HY) Highest at 1,200.51 times

With ROE of 22.68%, it has a very attractive valuation with a 2.10 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 -51.96%, its profits have risen by 34.7% ; the PEG ratio of the company is 0.3

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.

-51.96%

-1.30

43.72%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

139.69%

EBIT Growth (5y)

281.90%

EBIT to Interest (avg)

76.66

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.59

Sales to Capital Employed (avg)

2.53

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

2.10

EV to EBIT

4.55

EV to EBITDA

4.28

EV to Capital Employed

3.35

EV to Sales

0.63

PEG Ratio

0.28

Dividend Yield

ROCE (Latest)

73.58%

ROE (Latest)

22.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

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

9What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 34,300.82

RAW MATERIAL COST(Y)

Fallen by -7.22% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1,200.51 times

NET SALES(Q)

Highest at JPY 2,282.88 MM

OPERATING PROFIT(Q)

Highest at JPY 462.38 MM

OPERATING PROFIT MARGIN(Q)

Highest at 20.25 %

PRE-TAX PROFIT(Q)

Highest at JPY 455.04 MM

NET PROFIT(Q)

Highest at JPY 270.31 MM

-1What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -30.72 %

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

Interest Coverage Ratio

Highest at 34,300.82

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at JPY 2,282.88 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 462.38 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 20.25 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 455.04 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 270.31 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 1,200.51 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 -7.22% (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.

Debt-Equity Ratio

Highest at -30.72 %

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