freee K.K. (4478) 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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freee K.K.

Why is freee K.K. ?

Poor Management Efficiency with a low ROE of 0%

The company has reported losses. Due to this company has reported negative ROE

The company has declared negative results for the last 2 consecutive quarters

The company has declared negative results in Dec 25 after 6 consecutive negative quarters
PRE-TAX PROFIT(Q) At JPY 40.83 MM has Fallen at -83.24%
DEBT-EQUITY RATIO (HY) Highest at -96.72 %
DEBTORS TURNOVER RATIO(HY) Lowest at 9.04 times

Below par performance in long term as well as near term

Along with generating -47.14% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is freee K.K. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

freee K.K.

-47.14%

-0.21

62.79%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

35.09%

EBIT Growth (5y)

16.20%

EBIT to Interest (avg)

-797.38

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-1.32

Sales to Capital Employed (avg)

1.15

Tax Ratio

11.37%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

1.62%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

129

Industry P/E

Price to Book Value

6.21

EV to EBIT

387.76

EV to EBITDA

97.10

EV to Capital Employed

76.67

EV to Sales

2.80

PEG Ratio

0.97

Dividend Yield

ROCE (Latest)

19.77%

ROE (Latest)

4.83%

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

OBV

No Trend

Mildly Bullish

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

8What is working for the Company

NET SALES(Q)

Highest at JPY 10,901.95 MM

RAW MATERIAL COST(Y)

Fallen by 0.18% (YoY

-30What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 40.83 MM has Fallen at -83.24%

DEBT-EQUITY RATIO (HY)

Highest at -96.72 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.04 times

INTEREST(Q)

Highest at JPY 46.48 MM

NET PROFIT(Q)

Lowest at JPY 27.46 MM

EPS(Q)

Lowest at JPY 0.38

Here's what is working for freee K.K.

Net Sales

Highest at JPY 10,901.95 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

At JPY 10,901.95 MM has Grown at 26.77%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Raw Material Cost

Fallen by 0.18% (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 335.3 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 freee K.K.

Pre-Tax Profit

At JPY 40.83 MM has Fallen at -83.24%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 27.46 MM has Fallen at -88.17%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 46.48 MM has Grown at 33.53%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -96.72 % and Grown

In each half year 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

Interest

Highest at JPY 46.48 MM

in the last five periods and Increased by 33.53% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

Lowest at JPY 27.46 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 0.38

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Lowest at 9.04 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio