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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fujitsu Ltd.

Nomura Research Institute Ltd.

OTSUKA CORP.

OBIC Co. Ltd.

TIS, Inc. (Japan)

NEC Networks & System Integration Corp.

GMO Internet Group, Inc.

SHIFT, Inc.

NEC Corp.

NS Solutions Corp.

Fuji Soft, Inc.

Why is GMO Internet Group, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 43.12%

Healthy long term growth as Net Sales has grown by an annual rate of 6.65%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 38.10

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 41.08%, its profits have fallen by -1.9%

Market Beating Performance

The stock has generated a return of 41.08% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you buy?

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.

39.15%

684.59

33.99%

Japan Nikkei 225

28.54%

1.14

25.81%

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)

0.46

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

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Bullish

No Trend

OBV

Mildly Bullish

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

8What is working for the Company

ROCE(HY)

Highest at 18.62%

RAW MATERIAL COST(Y)

Fallen by 1.39% (YoY

CASH AND EQV(HY)

Highest at JPY 1,647,994 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 8.01%

OPERATING PROFIT(Q)

Highest at JPY 19,316 MM

OPERATING PROFIT MARGIN(Q)

Highest at 27.2 %

PRE-TAX PROFIT(Q)

Highest at JPY 14,849 MM

-12What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 32.93%

INTEREST(Q)

Highest at JPY 1,034 MM

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

Operating Profit

Highest at JPY 19,316 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 27.2 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 14,849 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Cash and Eqv

Highest at JPY 1,647,994 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 8.01%

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 1.39% (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

Depreciation

Highest at JPY 4,109 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 Internet Group, Inc.

Interest

At JPY 1,034 MM has Grown at 29.09%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 1,034 MM

in the last five periods and Increased by 29.09% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Dividend Payout Ratio

Lowest at 32.93%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)