Forum Engineering, Inc. (7088) 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

BuySell Technologies Co., Ltd.

AirTrip Corp.

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CareNet, Inc. (Japan)

Forum Engineering, Inc.

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giftee, Inc.

Why is Forum Engineering, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 13.47%

Company has very low debt and has enough cash to service the debt requirements

Flat results in Dec 25

INTEREST(Q) At JPY 3 MM has Grown at 50%

With ROE of 21.86%, it has a very attractive valuation with a 4.60 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 58.54%, its profits have risen by 40.7% ; the PEG ratio of the company is 0.5

Consistent Returns over the last 3 years

Along with generating 58.54% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Forum Engineering, Inc. 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 Forum Engineering, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Forum Engineering, Inc.

58.54%

3.10

32.09%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.76%

EBIT Growth (5y)

23.39%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.90

Sales to Capital Employed (avg)

2.55

Tax Ratio

34.05%

Dividend Payout Ratio

96.22%

Pledged Shares

Institutional Holding

ROCE (avg)

128.96%

ROE (avg)

13.47%

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

4.60

EV to EBIT

11.37

EV to EBITDA

10.37

EV to Capital Employed

36.68

EV to Sales

1.38

PEG Ratio

0.52

Dividend Yield

ROCE (Latest)

322.49%

ROE (Latest)

21.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

RAW MATERIAL COST(Y)

Fallen by 1.08% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 8.41 times

NET SALES(Q)

Highest at JPY 9,675 MM

OPERATING PROFIT(Q)

Highest at JPY 1,652 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.07 %

PRE-TAX PROFIT(Q)

Highest at JPY 1,575 MM

NET PROFIT(Q)

Highest at JPY 1,030.21 MM

-5What is not working for the Company

INTEREST(Q)

At JPY 3 MM has Grown at 50%

Here's what is working for Forum Engineering, Inc.

Net Sales

Highest at JPY 9,675 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,652 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 17.07 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 1,575 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 1,030.21 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Debtors Turnover Ratio

Highest at 8.41 times

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 1.08% (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 Forum Engineering, Inc.

Interest

At JPY 3 MM has Grown at 50%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)