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
- INTEREST(HY) At JPY 68.5 MM has Grown at 387.72%
- RAW MATERIAL COST(Y) Grown by 26.73% (YoY)
- CASH AND EQV(HY) Lowest at JPY 3,181.14 MM
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 -32.38%, its profits have fallen by -19.3%
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?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
FRONTEO, Inc.
-32.38%
0.05
47.54%
Japan Nikkei 225
43.52%
1.48
29.43%
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
Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
NET SALES(HY)
At JPY 3,850.69 MM has Grown at 32.03%
NET PROFIT(HY)
At JPY 206.28 MM has Grown at 60.94%
ROCE(HY)
Highest at 17.13%
-18What is not working for the Company
INTEREST(HY)
At JPY 68.5 MM has Grown at 387.72%
RAW MATERIAL COST(Y)
Grown by 26.73% (YoY
CASH AND EQV(HY)
Lowest at JPY 3,181.14 MM
DEBT-EQUITY RATIO
(HY)
Highest at 65.39 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 26.28 times
OPERATING PROFIT(Q)
Lowest at JPY -53.04 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -3.25 %
PRE-TAX PROFIT(Q)
Lowest at JPY -140 MM
Here's what is working for FRONTEO, Inc.
Net Sales
At JPY 3,850.69 MM has Grown at 32.03%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Profit
At JPY 206.28 MM has Grown at 60.94%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Here's what is not working for FRONTEO, Inc.
Interest
At JPY 68.5 MM has Grown at 387.72%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit
Lowest at JPY -53.04 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at -3.25 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY -140 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Cash and Eqv
Lowest at JPY 3,181.14 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 65.39 %
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 26.28 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 26.73% (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
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