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
Flat results in Dec 25
- NET PROFIT(9M) At JPY 188.55 MM has Grown at -35.08%
- RAW MATERIAL COST(Y) Grown by 8.2% (YoY)
- DEBT-EQUITY RATIO (HY) Highest at 46.43 %
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, Low Return
Absolute
Risk Adjusted
Volatility
FRONTEO, Inc.
37.33%
0.44
63.76%
Japan Nikkei 225
38.94%
1.30
28.24%
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
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
ROCE(HY)
Highest at 14.55%
NET SALES(Q)
Highest at JPY 2,049.61 MM
OPERATING PROFIT(Q)
Highest at JPY 449.08 MM
OPERATING PROFIT MARGIN(Q)
Highest at 21.91 %
PRE-TAX PROFIT(Q)
Highest at JPY 329.76 MM
NET PROFIT(Q)
Highest at JPY 289.41 MM
EPS(Q)
Highest at JPY 7.52
-19What is not working for the Company
NET PROFIT(9M)
At JPY 188.55 MM has Grown at -35.08%
RAW MATERIAL COST(Y)
Grown by 8.2% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 46.43 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 40.08 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.29 times
INTEREST(Q)
Highest at JPY 13.08 MM
Here's what is working for FRONTEO, Inc.
Net Profit
At JPY 289.41 MM has Grown at 238.34%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Net Sales
Highest at JPY 2,049.61 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Sales
At JPY 2,049.61 MM has Grown at 29.35%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 449.08 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 21.91 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 329.76 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Pre-Tax Profit
At JPY 329.76 MM has Grown at 78.98%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 289.41 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 7.52
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Depreciation
Highest at JPY 111.25 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for FRONTEO, Inc.
Interest
At JPY 13.08 MM has Grown at 19.6%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 13.08 MM
in the last five periods and Increased by 19.6% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at 46.43 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 40.08 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 5.29 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 8.2% (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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