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.

Business Engineering Corp.

MarkLines Co., Ltd.

oRo Co., Ltd.

ITFOR, Inc.

Global Security Experts, Inc.

Fixstars Corp.

GMO GlobalSign Holdings KK

Serverworks Co., Ltd.

Saison Technology Co., Ltd.

INES Corp.

Why is GMO GlobalSign Holdings KK ?

High Management Efficiency with a high ROE of 10.98%

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

Poor long term growth as Operating profit has grown by an annual rate -5.35% of over the last 5 years

With a growth in Net Sales of 9.19%, the company declared Very Positive results in Dec 25

ROCE(HY) Highest at 10.16%
CASH AND EQV(HY) Highest at JPY 17,470.01 MM
DEBT-EQUITY RATIO (HY) Lowest at -60.43 %

With ROE of 8.20%, it has a expensive valuation with a 2.66 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 -22.76%, its profits have fallen by -7.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -22.76% 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 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

GMO GlobalSign Holdings KK

-22.76%

-0.88

42.49%

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)

7.74%

EBIT Growth (5y)

-5.35%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.59

Sales to Capital Employed (avg)

1.61

Tax Ratio

32.35%

Dividend Payout Ratio

50.15%

Pledged Shares

Institutional Holding

ROCE (avg)

37.94%

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

2.66

EV to EBIT

16.68

EV to EBITDA

6.73

EV to Capital Employed

5.01

EV to Sales

0.96

PEG Ratio

Dividend Yield

ROCE (Latest)

30.04%

ROE (Latest)

8.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

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

15What is working for the Company

ROCE(HY)

Highest at 10.16%

CASH AND EQV(HY)

Highest at JPY 17,470.01 MM

DEBT-EQUITY RATIO (HY)

Lowest at -60.43 %

DIVIDEND PER SHARE(HY)

Highest at JPY 7.98

NET SALES(Q)

Highest at JPY 5,562.58 MM

OPERATING PROFIT(Q)

Highest at JPY 957.09 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.21 %

PRE-TAX PROFIT(Q)

Highest at JPY 473.05 MM

NET PROFIT(Q)

Highest at JPY 340.86 MM

-9What is not working for the Company

INTEREST(HY)

At JPY 16.74 MM has Grown at 34.26%

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.98 times

Here's what is working for GMO GlobalSign Holdings KK

Net Sales

Highest at JPY 5,562.58 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 957.09 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 17.21 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 473.05 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 340.86 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 17,470.01 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -60.43 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend per share

Highest at JPY 7.98

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Depreciation

Highest at JPY 465.76 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 GMO GlobalSign Holdings KK

Interest

At JPY 16.74 MM has Grown at 34.26%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 7.98 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio