Goodpatch, Inc. (7351) 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

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Why is Goodpatch, Inc. ?

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 -0.67% of over the last 5 years

Positive results in Nov 25

NET SALES(9M) At JPY 3,822.96 MM has Grown at 23.64%
ROCE(HY) Highest at 9.46%
RAW MATERIAL COST(Y) Fallen by 0.89% (YoY)

With ROE of 4.91%, it has a expensive valuation with a 1.59 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 -34.35%, its profits have risen by 26.1% ; the PEG ratio of the company is 1.3

Below par performance in long term as well as near term

Along with generating -34.35% 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 Goodpatch, 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 Goodpatch, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Goodpatch, Inc.

-34.35%

-0.09

51.55%

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)

16.43%

EBIT Growth (5y)

-0.67%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.76

Sales to Capital Employed (avg)

1.03

Tax Ratio

34.37%

Dividend Payout Ratio

21.58%

Pledged Shares

Institutional Holding

ROCE (avg)

47.85%

ROE (avg)

6.93%

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

1.59

EV to EBIT

11.31

EV to EBITDA

8.76

EV to Capital Employed

3.50

EV to Sales

0.75

PEG Ratio

1.28

Dividend Yield

ROCE (Latest)

30.92%

ROE (Latest)

4.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

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

10What is working for the Company

NET SALES(9M)

At JPY 3,822.96 MM has Grown at 23.64%

ROCE(HY)

Highest at 9.46%

RAW MATERIAL COST(Y)

Fallen by 0.89% (YoY

NET PROFIT(9M)

Higher at JPY 233.33 MM

-4What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -50.95 %

NET SALES(Q)

Lowest at JPY 1,206.36 MM

PRE-TAX PROFIT(Q)

At JPY 112.2 MM has Fallen at -26.91%

NET PROFIT(Q)

At JPY 60.81 MM has Fallen at -39.54%

Here's what is working for Goodpatch, Inc.

Raw Material Cost

Fallen by 0.89% (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 21.96 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 Goodpatch, Inc.

Net Sales

Lowest at JPY 1,206.36 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 112.2 MM has Fallen at -26.91%

over average net sales of the previous four periods of JPY 153.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 60.81 MM has Fallen at -39.54%

over average net sales of the previous four periods of JPY 100.59 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -50.95 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio