gumi, Inc. (3903) 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

Cyber Security Cloud, Inc.

Pro-Ship, Inc.

System Support, Inc.

Bank of Innovation, Inc.

eWell Co., Ltd. (Japan)

FINDEX, Inc.

RPA Holdings, Inc.

FRONTEO, Inc.

gumi, Inc.

BrainPad, Inc.

FIXER Inc

Why is gumi, Inc. ?

Poor Management Efficiency with a low ROE of 3.76%

The company has been able to generate a Return on Equity (avg) of 3.76% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -10.32% and Operating profit at -232.80% over the last 5 years

Negative results in Oct 25

NET SALES(HY) At JPY 3,850.36 MM has Grown at -29.92%
PRE-TAX PROFIT(Q) At JPY -284.91 MM has Fallen at -172.55%
NET PROFIT(Q) At JPY 30.51 MM has Fallen at -91.69%

Below par performance in long term as well as near term

Along with generating -33.75% 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 gumi, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

gumi, Inc.

-100.0%

-0.09

66.12%

Japan Nikkei 225

38.94%

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)

-10.32%

EBIT Growth (5y)

-232.80%

EBIT to Interest (avg)

-16.13

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

0.52

Tax Ratio

16.90%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.42%

ROE (avg)

3.76%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.51

EV to EBIT

-10.92

EV to EBITDA

-16.10

EV to Capital Employed

1.87

EV to Sales

1.73

PEG Ratio

Dividend Yield

ROCE (Latest)

-17.15%

ROE (Latest)

-8.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

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

13What is working for the Company

NET PROFIT(HY)

At JPY 178.26 MM has Grown at 115.39%

ROCE(HY)

Highest at 16.17%

NET SALES(Q)

At JPY 2,496.03 MM has Grown at 34.05%

RAW MATERIAL COST(Y)

Fallen by -71.86% (YoY

-29What is not working for the Company

NET SALES(HY)

At JPY 3,850.36 MM has Grown at -29.92%

PRE-TAX PROFIT(Q)

At JPY -284.91 MM has Fallen at -172.55%

NET PROFIT(Q)

At JPY 30.51 MM has Fallen at -91.69%

DEBT-EQUITY RATIO (HY)

Highest at 10.97 %

INTEREST(Q)

Highest at JPY 22.57 MM

OPERATING PROFIT(Q)

Lowest at JPY -107.11 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -4.29 %

EPS(Q)

Lowest at JPY 1.96

Here's what is working for gumi, Inc.

Net Sales

At JPY 2,496.03 MM has Grown at 34.05%

over average net sales of the previous four periods of JPY 1,862.08 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Raw Material Cost

Fallen by -71.86% (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 128.73 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 128.73 MM has Grown at 896.19%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

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

Pre-Tax Profit

At JPY -284.91 MM has Fallen at -172.55%

over average net sales of the previous four periods of JPY 392.72 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 30.51 MM has Fallen at -91.69%

over average net sales of the previous four periods of JPY 367.14 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 22.57 MM has Grown at 27.21%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 22.57 MM

in the last five periods and Increased by 27.21% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY -107.11 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -4.29 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at JPY 1.96

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at 10.97 %

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