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

CHANGE Holdings, Inc.

NSD Co., Ltd.

Sansan, Inc.

Money Forward, Inc.

JustSystems Corp.

MIXI, Inc.

Appier Group, Inc.

freee K.K.

GungHo Online Entertainment, Inc.

GREE, Inc.

DeNA Co., Ltd.

Why is GREE, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of -2.53% over the last 5 years

With a fall in Net Sales of -0.45%, the company declared Very Negative results in Dec 25

INTEREST(HY) At JPY 110 MM has Grown at 25%
INTEREST COVERAGE RATIO(Q) Lowest at 965.38
NET PROFIT(Q) At JPY 242.67 MM has Fallen at -73.45%

Below par performance in long term as well as near term

Along with generating -35.46% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is GREE, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

GREE, Inc.

-35.46%

332.46

27.21%

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)

-2.53%

EBIT Growth (5y)

2.35%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.83

Sales to Capital Employed (avg)

0.58

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

0.99

EV to EBIT

2.79

EV to EBITDA

2.66

EV to Capital Employed

0.92

EV to Sales

0.25

PEG Ratio

Dividend Yield

ROCE (Latest)

33.04%

ROE (Latest)

2.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

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

2What is working for the Company

NET PROFIT(HY)

Higher at JPY 1,230.34 MM

-31What is not working for the Company

INTEREST(HY)

At JPY 110 MM has Grown at 25%

INTEREST COVERAGE RATIO(Q)

Lowest at 965.38

NET PROFIT(Q)

At JPY 242.67 MM has Fallen at -73.45%

NET SALES(Q)

Lowest at JPY 12,707 MM

OPERATING PROFIT(Q)

Lowest at JPY 502 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.95 %

RAW MATERIAL COST(Y)

Grown by 20.12% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.61 times

PRE-TAX PROFIT(Q)

Lowest at JPY 852 MM

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

Interest

At JPY 110 MM has Grown at 25%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 965.38 and Fallen

In each period 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 242.67 MM has Fallen at -73.45%

over average net sales of the previous four periods of JPY 913.85 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 12,707 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Net Sales

At JPY 12,707 MM has Fallen at -10.73%

over average net sales of the previous four periods of JPY 14,233.75 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 502 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 3.95 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At JPY 852 MM has Fallen at -50.01%

over average net sales of the previous four periods of JPY 1,704.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 852 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Debtors Turnover Ratio

Lowest at 5.61 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 20.12% (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