GiG Works, Inc. (2375) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Careerlink Co., Ltd.

COPRO-HOLDINGS Co., Ltd.

Port, Inc. (Japan)

Will Group, Inc.

Artner Co., Ltd.

GiG Works, Inc.

Human Holdings Co., Ltd.

Interworks Confidence, Inc.

Matching Service Japan Co., Ltd.

CrowdWorks, Inc.

Welbe, Inc.

Why is GiG Works, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate -200.16% of over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At JPY 12.42 MM has Grown at 16.19%
NET SALES(HY) At JPY 11,199.98 MM has Grown at -9.15%
INVENTORY TURNOVER RATIO(HY) Lowest at 61.57 times

With ROE of -49.18%, it has a risky valuation with a 2.42 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 -18.07%, its profits have fallen by -1532.4%

Below par performance in long term as well as near term

Along with generating -18.07% 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 Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to GiG Works, Inc. should be less than 10%
Overall Portfolio exposure to Diversified Commercial Services should be less than 30%

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

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

Is GiG Works, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

GiG Works, Inc.

-100.0%

-1.31

51.82%

Japan Nikkei 225

40.96%

1.35

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.69%

EBIT Growth (5y)

-200.16%

EBIT to Interest (avg)

18.06

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.61

Sales to Capital Employed (avg)

4.73

Tax Ratio

31.78%

Dividend Payout Ratio

14.58%

Pledged Shares

Institutional Holding

ROCE (avg)

16.14%

ROE (avg)

6.91%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.42

EV to EBIT

-8.84

EV to EBITDA

-21.65

EV to Capital Employed

1.88

EV to Sales

0.27

PEG Ratio

Dividend Yield

ROCE (Latest)

-21.30%

ROE (Latest)

-49.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

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

18What is working for the Company

ROCE(HY)

Highest at 10.18%

RAW MATERIAL COST(Y)

Fallen by -0.19% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -18 %

OPERATING PROFIT(Q)

Highest at JPY 327.53 MM

OPERATING PROFIT MARGIN(Q)

Highest at 5.9 %

PRE-TAX PROFIT(Q)

At JPY 203.97 MM has Grown at 81.51%

NET PROFIT(Q)

At JPY 126.61 MM has Grown at 91.45%

-14What is not working for the Company

INTEREST(HY)

At JPY 12.42 MM has Grown at 16.19%

NET SALES(HY)

At JPY 11,199.98 MM has Grown at -9.15%

INVENTORY TURNOVER RATIO(HY)

Lowest at 61.57 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.41 times

Here's what is working for GiG Works, Inc.

Operating Profit

Highest at JPY 327.53 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 5.9 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At JPY 203.97 MM has Grown at 81.51%

over average net sales of the previous four periods of JPY 112.38 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 126.61 MM has Grown at 91.45%

over average net sales of the previous four periods of JPY 66.13 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at -18 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -0.19% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 118.53 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Here's what is not working for GiG Works, Inc.

Interest

At JPY 12.42 MM has Grown at 16.19%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 11,199.98 MM has Grown at -9.15%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Inventory Turnover Ratio

Lowest at 61.57 times

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 8.41 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio