GMO GlobalSign Holdings KK (3788) 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

Cresco Ltd.

Global Security Experts, Inc.

MarkLines Co., Ltd.

Business Engineering Corp.

ITFOR, Inc.

oRo Co., Ltd.

GMO GlobalSign Holdings KK

Fixstars Corp.

Saison Technology Co., Ltd.

Serverworks Co., Ltd.

INES Corp.

Why is GMO GlobalSign Holdings KK ?

Weak Long Term Fundamental Strength with a 5.33% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 5.33% of over the last 5 years

Positive results in Mar 26

ROCE(HY) Highest at 12.14%
DEBT-EQUITY RATIO (HY) Lowest at -62.12 %
NET SALES(Q) Highest at JPY 5,566.77 MM

With ROE of 11.96%, it has a fair valuation with a 2.21 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 2.04%, its profits have risen by 64.3% ; the PEG ratio of the company is 0.3

Underperformed the market in the last 1 year

The stock has generated a return of 2.04% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 60.14%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to GMO GlobalSign Holdings KK should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

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

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

Is GMO GlobalSign Holdings KK for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

GMO GlobalSign Holdings KK

3.27%

-0.61

37.31%

Japan Nikkei 225

58.07%

2.05

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.90%

EBIT Growth (5y)

5.33%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.59

Sales to Capital Employed (avg)

1.60

Tax Ratio

25.33%

Dividend Payout Ratio

65.00%

Pledged Shares

Institutional Holding

ROCE (avg)

36.90%

ROE (avg)

10.98%

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

2.21

EV to EBIT

9.70

EV to EBITDA

4.67

EV to Capital Employed

4.39

EV to Sales

0.74

PEG Ratio

0.29

Dividend Yield

ROCE (Latest)

45.26%

ROE (Latest)

11.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Mildly Bullish

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

15What is working for the Company

ROCE(HY)

Highest at 12.14%

DEBT-EQUITY RATIO (HY)

Lowest at -62.12 %

NET SALES(Q)

Highest at JPY 5,566.77 MM

NET PROFIT(Q)

Highest at JPY 347.48 MM

CASH AND EQV(HY)

Highest at JPY 18,444.47 MM

PRE-TAX PROFIT(Q)

At JPY 462.1 MM has Grown at 62.92%

EPS(Q)

Highest at JPY 30.29

-11What is not working for the Company

INTEREST(Q)

Highest at JPY 10.46 MM

Here's what is working for GMO GlobalSign Holdings KK

Net Sales

Highest at JPY 5,566.77 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Profit

Highest at JPY 347.48 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at -62.12 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Pre-Tax Profit

At JPY 462.1 MM has Grown at 62.92%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 347.48 MM has Grown at 71.67%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 30.29

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 18,444.47 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for GMO GlobalSign Holdings KK

Interest

At JPY 10.46 MM has Grown at 28.35%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 10.46 MM

in the last five periods and Increased by 28.35% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)