Genetec Corp. (4492) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Capital Asset Planning, Inc.

Science Arts, Inc.

Brains Technology, Inc.

WITZ Corp.

System Integrator Corp.

Softmax Co., Ltd. (Japan)

Genetec Corp.

Appirits Inc.

Kushim, Inc. (Japan)

CyberStep, Inc.

iRidge, Inc.

Why is Genetec Corp. ?

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Net Sales has grown by an annual rate of 18.80%

Negative results in Jun 25

PRE-TAX PROFIT(Q) At JPY 29.94 MM has Fallen at -80.03%
INTEREST(Q) At JPY 7.69 MM has Grown at 97%
INTEREST COVERAGE RATIO(Q) Lowest at 1,068.47

With ROE of 18.27%, it has a very attractive valuation with a 2.18 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -18.44%, its profits have risen by 6.5% ; the PEG ratio of the company is 1.9

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 29.35% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -18.44% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Genetec Corp. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Genetec Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Genetec Corp.

-18.22%

-0.78

39.07%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.80%

EBIT Growth (5y)

28.53%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

2.25

Tax Ratio

36.39%

Dividend Payout Ratio

48.89%

Pledged Shares

Institutional Holding

ROCE (avg)

30.34%

ROE (avg)

11.10%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.18

EV to EBIT

7.95

EV to EBITDA

6.49

EV to Capital Employed

2.06

EV to Sales

0.68

PEG Ratio

1.90

Dividend Yield

ROCE (Latest)

25.95%

ROE (Latest)

18.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

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

4What is working for the Company

CASH AND EQV(HY)

Highest at JPY 3,902.87 MM

NET SALES(Q)

Highest at JPY 2,486.77 MM

-30What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 29.94 MM has Fallen at -80.03%

INTEREST(Q)

At JPY 7.69 MM has Grown at 97%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,068.47

RAW MATERIAL COST(Y)

Grown by 9.6% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 15.81 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 21.71%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.96%

OPERATING PROFIT(Q)

Lowest at JPY 82.18 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.3 %

NET PROFIT(Q)

Lowest at JPY 11.98 MM

EPS(Q)

Lowest at JPY 1.5

Here's what is working for Genetec Corp.

Net Sales

Highest at JPY 2,486.77 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 2,486.77 MM has Grown at 23.42%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 3,902.87 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 57.6 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 57.6 MM has Grown at 38.8%

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 Genetec Corp.

Pre-Tax Profit

At JPY 29.94 MM has Fallen at -80.03%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 11.98 MM has Fallen at -78.41%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 7.69 MM has Grown at 97%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,068.47

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 7.69 MM

in the last five periods and Increased by 97% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 82.18 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 3.3 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 29.94 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 11.98 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 1.5

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at 15.81 %

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

Inventory Turnover Ratio

Lowest at 21.71%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.96%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 9.6% (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