GMO Internet Group, Inc. (9449) 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

OTSUKA CORP.

NEC Networks & System Integration Corp.

OBIC Co. Ltd.

Fujitsu Ltd.

TIS, Inc. (Japan)

Nomura Research Institute Ltd.

NEC Corp.

NS Solutions Corp.

GMO Internet Group, Inc.

SHIFT, Inc.

Fuji Soft, Inc.

Why is GMO Internet Group, Inc. ?

High Management Efficiency with a high ROE of 43.12%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 38.10

Negative results in Dec 25

INTEREST(HY) At JPY 2,155 MM has Grown at 28.73%
INTEREST COVERAGE RATIO(Q) Lowest at 1,620.53
DEBTORS TURNOVER RATIO(HY) Lowest at 5.99 times

With ROE of 36.77%, it has a expensive valuation with a 4.74 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 -12.14%, its profits have fallen by -1.9%

Below par performance in long term as well as near term

Along with generating -12.14% 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 GMO Internet Group, Inc. 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 Internet Group, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

GMO Internet Group, Inc.

-12.14%

449.41

37.67%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.65%

EBIT Growth (5y)

10.34%

EBIT to Interest (avg)

38.10

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-2.64

Sales to Capital Employed (avg)

0.45

Tax Ratio

34.86%

Dividend Payout Ratio

33.03%

Pledged Shares

Institutional Holding

ROCE (avg)

315.13%

ROE (avg)

43.12%

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

4.74

EV to EBIT

3.72

EV to EBITDA

2.79

EV to Capital Employed

-1.28

EV to Sales

0.62

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

36.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 58.42%

CASH AND EQV(HY)

Highest at JPY 1,925,596 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 5.99

NET SALES(Q)

Highest at JPY 71,811 MM

-16What is not working for the Company

INTEREST(HY)

At JPY 2,155 MM has Grown at 28.73%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,620.53

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.99 times

PRE-TAX PROFIT(Q)

Lowest at JPY 10,866 MM

NET PROFIT(Q)

Lowest at JPY 2,212.42 MM

EPS(Q)

Lowest at JPY 24.01

Here's what is working for GMO Internet Group, Inc.

Net Sales

Highest at JPY 71,811 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 1,925,596 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 5.99

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 58.42%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for GMO Internet Group, Inc.

Interest

At JPY 2,155 MM has Grown at 28.73%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,620.53

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At JPY 2,212.42 MM has Fallen at -53.89%

over average net sales of the previous four periods of JPY 4,798.6 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 10,866 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 2,212.42 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 24.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Lowest at 5.99 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio