ScoreWhy is GMO Financial Gate, Inc. ?
1
Strong Long Term Fundamental Strength with a 38.45% CAGR growth in Operating Profits
- Company has very low debt and has enough cash to service the debt requirements
- The company has been able to generate a Return on Capital Employed (avg) of 37.56% signifying high profitability per unit of total capital (equity and debt)
2
Negative results in Mar 26
- INTEREST COVERAGE RATIO(Q) Lowest at 5,189.38
- RAW MATERIAL COST(Y) Grown by 19.02% (YoY)
- DEBT-EQUITY RATIO (HY) Highest at -11.68 %
3
With ROE of 27.33%, it has a expensive valuation with a 7.34 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 -4.76%, its profits have risen by 23.7% ; the PEG ratio of the company is 1.1
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -4.76% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to GMO Financial Gate, Inc. should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is GMO Financial Gate, Inc. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
GMO Financial Gate, Inc.
-4.76%
-0.27
39.96%
Japan Nikkei 225
69.64%
2.62
26.55%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
23.17%
EBIT Growth (5y)
38.45%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.38
Sales to Capital Employed (avg)
2.28
Tax Ratio
23.83%
Dividend Payout Ratio
50.13%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
37.56%
ROE (avg)
15.27%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
27
Industry P/E
Price to Book Value
7.34
EV to EBIT
19.13
EV to EBITDA
14.91
EV to Capital Employed
7.33
EV to Sales
2.45
PEG Ratio
1.13
Dividend Yield
NA
ROCE (Latest)
38.31%
ROE (Latest)
27.33%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 836.32 MM
CASH AND EQV(HY)
Highest at JPY 10,143.37 MM
NET SALES(Q)
Highest at JPY 5,572.59 MM
-18What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 5,189.38
RAW MATERIAL COST(Y)
Grown by 19.02% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -11.68 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.48 times
INTEREST(Q)
Highest at JPY 13.51 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 12.58 %
Here's what is working for GMO Financial Gate, Inc.
Operating Cash Flow
Highest at JPY 836.32 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Net Sales
Highest at JPY 5,572.59 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Sales
At JPY 5,572.59 MM has Grown at 21.9%
over average net sales of the previous four periods of JPY 4,571.56 MMMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Cash and Eqv
Highest at JPY 10,143.37 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Depreciation
Highest at JPY 182.36 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 GMO Financial Gate, Inc.
Interest
At JPY 13.51 MM has Grown at 103.57%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 5,189.38
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 13.51 MM
in the last five periods and Increased by 103.57% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit Margin
Lowest at 12.58 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debt-Equity Ratio
Highest at -11.68 %
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 3.48 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 19.02% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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