ScoreWhy is FRONTEO, Inc. ?
1
Poor Management Efficiency with a low ROCE of 10.83%
- The company has been able to generate a Return on Capital Employed (avg) of 10.83% signifying low profitability per unit of total capital (equity and debt)
2
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of -10.24% and Operating profit at 21.29% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 9.03% signifying low profitability per unit of shareholders funds
3
With a fall in Net Sales of -2.17%, the company declared Very Negative results in Jun 25
- The company has declared negative results in Mar 25 after 4 consecutive negative quarters
- NET SALES(9M) At JPY 4,501.12 MM has Grown at -18.28%
- PRE-TAX PROFIT(Q) At JPY -134.93 MM has Fallen at -176.64%
- NET PROFIT(Q) At JPY -156.22 MM has Fallen at -226.86%
Real-Time Research ReportHow 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 FRONTEO, Inc. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
FRONTEO, Inc.
26.41%
0.62
61.78%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-10.24%
EBIT Growth (5y)
21.29%
EBIT to Interest (avg)
2.63
Debt to EBITDA (avg)
0.37
Net Debt to Equity (avg)
-0.20
Sales to Capital Employed (avg)
1.09
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.83%
ROE (avg)
9.03%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
44
Industry P/E
Price to Book Value
7.50
EV to EBIT
44.68
EV to EBITDA
27.01
EV to Capital Employed
9.08
EV to Sales
3.86
PEG Ratio
0.13
Dividend Yield
NA
ROCE (Latest)
20.33%
ROE (Latest)
17.07%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
ROCE(HY)
Highest at 8.2%
-33What is not working for the Company
NET SALES(9M)
At JPY 4,501.12 MM has Grown at -18.28%
PRE-TAX PROFIT(Q)
At JPY -134.93 MM has Fallen at -176.64%
NET PROFIT(Q)
At JPY -156.22 MM has Fallen at -226.86%
INTEREST(Q)
At JPY 11.25 MM has Grown at 302.72%
INTEREST COVERAGE RATIO(Q)
Lowest at 151.18
RAW MATERIAL COST(Y)
Grown by 7.15% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 45.44%
OPERATING PROFIT(Q)
Lowest at JPY 17.01 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 1.1 %
EPS(Q)
Lowest at JPY -4.28
Here's what is working for FRONTEO, Inc.
Depreciation
Highest at JPY 105.62 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Depreciation
At JPY 105.62 MM has Grown at 31.51%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (JPY MM)
Here's what is not working for FRONTEO, Inc.
Net Sales
At JPY 2,916.62 MM has Grown at -22.79%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (JPY MM)
Pre-Tax Profit
At JPY -134.93 MM has Fallen at -176.64%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY -156.22 MM has Fallen at -226.86%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 11.25 MM has Grown at 302.72%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 151.18
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 11.25 MM
in the last five periods and Increased by 302.72% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit
Lowest at JPY 17.01 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 1.1 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Net Profit
Lowest at JPY -156.22 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY -4.28
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Inventory Turnover Ratio
Lowest at 45.44%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 7.15% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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