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
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of -8.40% and Operating profit at 26.12% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 9.13% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -8.40% and Operating profit at 26.12% over the last 5 years
4
With ROE of 12.60%, it has a expensive valuation with a 6.12 Price to Book Value
- Over the past year, while the stock has generated a return of -35.18%, its profits have fallen by -19.3%
5
Below par performance in long term as well as near term
- Along with generating -35.18% 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 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.
-35.18%
0.02
54.79%
Japan Nikkei 225
59.79%
2.03
29.50%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-8.40%
EBIT Growth (5y)
26.12%
EBIT to Interest (avg)
2.79
Debt to EBITDA (avg)
0.49
Net Debt to Equity (avg)
-0.20
Sales to Capital Employed (avg)
1.12
Tax Ratio
18.18%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.75%
ROE (avg)
9.13%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
49
Industry P/E
Price to Book Value
6.12
EV to EBIT
59.36
EV to EBITDA
30.25
EV to Capital Employed
4.50
EV to Sales
3.58
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
7.58%
ROE (Latest)
12.60%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend26What is working for the Company
NET SALES(Q)
Highest at JPY 2,218.4 MM
PRE-TAX PROFIT(Q)
Highest at JPY 349.58 MM
OPERATING PROFIT(Q)
Highest at JPY 536.89 MM
OPERATING PROFIT MARGIN(Q)
Highest at 24.2 %
NET PROFIT(Q)
Highest at JPY 322.57 MM
EPS(Q)
Highest at JPY 8.19
-15What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 59.57 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 48.67 times
INTEREST(Q)
Highest at JPY 50.94 MM
Here's what is working for FRONTEO, Inc.
Pre-Tax Profit
At JPY 349.58 MM has Grown at 265.87%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Sales
Highest at JPY 2,218.4 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Net Sales
At JPY 2,218.4 MM has Grown at 61.91%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Pre-Tax Profit
Highest at JPY 349.58 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Operating Profit
Highest at JPY 536.89 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 24.2 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Net Profit
Highest at JPY 322.57 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 8.19
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Depreciation
Highest at JPY 129.58 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 50.94 MM has Grown at 289.58%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 50.94 MM
in the last five periods and Increased by 289.58% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at 59.57 %
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 48.67 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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