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

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Matching Service Japan Co., Ltd.

CrowdWorks, Inc.

GiG Works, Inc.

Welbe, Inc.

Why is GiG Works, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate -23.00% of over the last 5 years

Negative results in Apr 26

NET PROFIT(Q) At JPY 86.89 MM has Fallen at -68%
PRE-TAX PROFIT(Q) At JPY 183.67 MM has Fallen at -39.76%
INTEREST(Q) Highest at JPY 6.91 MM

With ROE of 40.16%, it has a very attractive valuation with a 1.76 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 -14.88%, its profits have risen by 201.1% ; the PEG ratio of the company is 0

Below par performance in long term as well as near term

Along with generating -14.88% 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 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 Diversified Commercial Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is GiG Works, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

GiG Works, Inc.

-14.88%

-1.55

43.50%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.19%

EBIT Growth (5y)

-23.00%

EBIT to Interest (avg)

18.06

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

4.74

Tax Ratio

31.78%

Dividend Payout Ratio

14.58%

Pledged Shares

Institutional Holding

ROCE (avg)

16.14%

ROE (avg)

5.67%

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

1.76

EV to EBIT

12.08

EV to EBITDA

5.60

EV to Capital Employed

1.84

EV to Sales

0.21

PEG Ratio

0.02

Dividend Yield

ROCE (Latest)

15.20%

ROE (Latest)

40.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

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

RAW MATERIAL COST(Y)

Fallen by -0.6% (YoY

NET PROFIT(9M)

Higher at JPY 280.1 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 10.07 times

NET SALES(Q)

Highest at JPY 5,855.55 MM

-16What is not working for the Company

NET PROFIT(Q)

At JPY 86.89 MM has Fallen at -68%

PRE-TAX PROFIT(Q)

At JPY 183.67 MM has Fallen at -39.76%

INTEREST(Q)

Highest at JPY 6.91 MM

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

Net Sales

Highest at JPY 5,855.55 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debtors Turnover Ratio

Highest at 10.07 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.6% (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

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

Net Profit

At JPY 86.89 MM has Fallen at -68%

over average net sales of the previous four periods of JPY 271.49 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 183.67 MM has Fallen at -39.76%

over average net sales of the previous four periods of JPY 304.92 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest

Highest at JPY 6.91 MM

in the last five periods and Increased by 8.87% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)