GREE, Inc. (3632) 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

NSD Co., Ltd.

CHANGE Holdings, Inc.

Money Forward, Inc.

Sansan, Inc.

JustSystems Corp.

MIXI, Inc.

GungHo Online Entertainment, Inc.

GREE, Inc.

Appier Group, Inc.

freee K.K.

DeNA Co., Ltd.

Why is GREE, Inc. ?

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

Poor long term growth as Net Sales has grown by an annual rate of -1.85% over the last 5 years

Negative results in Mar 26

NET PROFIT(HY) At JPY 969.28 MM has Grown at -59.25%
NET SALES(HY) At JPY 25,679 MM has Grown at -14.96%
INTEREST(HY) At JPY 102 MM has Grown at 14.61%

With ROE of 1.89%, it has a very attractive valuation with a 0.76 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 -25.68%, its profits have fallen by -63.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -25.68% 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 GREE, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is GREE, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

GREE, Inc.

-25.68%

315.67

29.43%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.85%

EBIT Growth (5y)

4.85%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.83

Sales to Capital Employed (avg)

0.54

Tax Ratio

49.76%

Dividend Payout Ratio

207.90%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

52.24%

ROE (avg)

7.90%

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

0.76

EV to EBIT

-2.18

EV to EBITDA

-2.00

EV to Capital Employed

-0.70

EV to Sales

-0.17

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

1.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

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

7What is working for the Company

CASH AND EQV(HY)

Highest at JPY 197,126 MM

DEBT-EQUITY RATIO (HY)

Lowest at -90.62 %

NET PROFIT(Q)

At JPY 726.6 MM has Grown at 102.34%

-18What is not working for the Company

NET PROFIT(HY)

At JPY 969.28 MM has Grown at -59.25%

NET SALES(HY)

At JPY 25,679 MM has Grown at -14.96%

INTEREST(HY)

At JPY 102 MM has Grown at 14.61%

RAW MATERIAL COST(Y)

Grown by 11.15% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.92 times

Here's what is working for GREE, Inc.

Net Profit

At JPY 726.6 MM has Grown at 102.34%

over average net sales of the previous four periods of JPY 359.1 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 197,126 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -90.62 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for GREE, Inc.

Net Sales

At JPY 25,679 MM has Grown at -14.96%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest

At JPY 102 MM has Grown at 14.61%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 5.92 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 11.15% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales