FreeBit Co., Ltd. (3843) 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

BuySell Technologies Co., Ltd.

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AirTrip Corp.

CareNet, Inc. (Japan)

Atrae, Inc.

Lifull Co., Ltd.

istyle, Inc.

MTI Ltd.

FreeBit Co., Ltd.

Enechange Ltd.

giftee, Inc.

Why is FreeBit Co., Ltd. ?

High Management Efficiency with a high ROE of 35.14%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 39.50

Negative results in Apr 25

NET PROFIT(Q) At JPY 369.81 MM has Fallen at -56.41%
INTEREST(Q) At JPY 42.33 MM has Grown at 77.08%
INTEREST COVERAGE RATIO(Q) Lowest at 3,264.91

With ROE of 31.98%, it has a very attractive valuation with a 2.60 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 10.18%, its profits have risen by 5.4% ; the PEG ratio of the company is 1.5

Underperformed the market in the last 1 year

The stock has generated a return of 10.18% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to FreeBit 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 FreeBit Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

FreeBit Co., Ltd.

10.06%

0.31

33.81%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.98%

EBIT Growth (5y)

18.03%

EBIT to Interest (avg)

38.26

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.49

Sales to Capital Employed (avg)

2.18

Tax Ratio

22.86%

Dividend Payout Ratio

22.09%

Pledged Shares

Institutional Holding

ROCE (avg)

84.38%

ROE (avg)

35.14%

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

2.60

EV to EBIT

4.95

EV to EBITDA

4.42

EV to Capital Employed

4.14

EV to Sales

0.55

PEG Ratio

1.50

Dividend Yield

ROCE (Latest)

83.70%

ROE (Latest)

31.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

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

6What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 5.51

NET SALES(Q)

Highest at JPY 14,522.25 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 295.72%

CASH AND EQV(HY)

Highest at JPY 39,953.03 MM

-30What is not working for the Company

NET PROFIT(Q)

At JPY 369.81 MM has Fallen at -56.41%

INTEREST(Q)

At JPY 42.33 MM has Grown at 77.08%

INTEREST COVERAGE RATIO(Q)

Lowest at 3,264.91

RAW MATERIAL COST(Y)

Grown by 6.74% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 16.5 %

OPERATING PROFIT(Q)

Lowest at JPY 1,381.97 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.52 %

PRE-TAX PROFIT(Q)

Lowest at JPY 589.96 MM

EPS(Q)

Lowest at JPY 10.01

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

Net Sales

Highest at JPY 14,522.25 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Dividend per share

Highest at JPY 5.51 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Cash and Eqv

Highest at JPY 39,953.03 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 295.72%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at JPY 188.48 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for FreeBit Co., Ltd.

Pre-Tax Profit

At JPY 589.96 MM has Fallen at -59.79%

over average net sales of the previous four periods of JPY 1,467.26 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 369.81 MM has Fallen at -56.41%

over average net sales of the previous four periods of JPY 848.33 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 42.33 MM has Grown at 77.08%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 3,264.91

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 42.33 MM

in the last five periods and Increased by 77.08% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 1,381.97 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 9.52 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 589.96 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 369.81 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 10.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at 16.5 %

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

Raw Material Cost

Grown by 6.74% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales