ScoreWhy is gumi, Inc. ?
1
Poor Management Efficiency with a low ROE of 4.88%
- The company has been able to generate a Return on Equity (avg) of 4.88% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of -16.08% and Operating profit at -40.85% over the last 5 years
3
With a growth in Net Profit of 378.6%, the company declared Very Positive results in Jan 26
- RAW MATERIAL COST(Y) Fallen by -21.78% (YoY)
- NET PROFIT(9M) Higher at JPY 659.64 MM
- DEBTORS TURNOVER RATIO(HY) Highest at 11.49 times
4
With ROE of 4.47%, it has a attractive valuation with a 0.86 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 -67.28%, its profits have risen by 171.2% ; the PEG ratio of the company is 0.1
5
Below par performance in long term as well as near term
- Along with generating -67.28% 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 ReportHow much should you hold?
- Overall Portfolio exposure to gumi, 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 gumi, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
gumi, Inc.
-67.28%
-0.67
48.77%
Japan Nikkei 225
75.22%
2.67
28.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-16.08%
EBIT Growth (5y)
-40.85%
EBIT to Interest (avg)
-16.13
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.57
Sales to Capital Employed (avg)
0.49
Tax Ratio
16.90%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.42%
ROE (avg)
4.88%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
0.86
EV to EBIT
96.17
EV to EBITDA
30.15
EV to Capital Employed
0.87
EV to Sales
2.31
PEG Ratio
0.12
Dividend Yield
NA
ROCE (Latest)
0.90%
ROE (Latest)
4.47%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -21.78% (YoY
NET PROFIT(9M)
Higher at JPY 659.64 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 11.49 times
NET SALES(Q)
Highest at JPY 2,982.49 MM
OPERATING PROFIT(Q)
Highest at JPY 593.13 MM
OPERATING PROFIT MARGIN(Q)
Highest at 19.89 %
-8What is not working for the Company
INTEREST(9M)
At JPY 57.35 MM has Grown at 20.21%
NET PROFIT(HY)
At JPY 511.89 MM has Grown at -38.24%
CASH AND EQV(HY)
Lowest at JPY 9,278.63 MM
DEBT-EQUITY RATIO
(HY)
Highest at 2.81 %
Here's what is working for gumi, Inc.
Net Sales
At JPY 2,982.49 MM has Grown at 63.45%
over average net sales of the previous four periods of JPY 1,824.74 MMMOJO Watch
Near term sales trend is extremely positive
Net Sales (JPY MM)
Net Sales
Highest at JPY 2,982.49 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 593.13 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 19.89 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Debtors Turnover Ratio
Highest at 11.49 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -21.78% (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 299.52 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Depreciation
At JPY 299.52 MM has Grown at 132.67%
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.
Interest
At JPY 57.35 MM has Grown at 20.21%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Profit
At JPY 511.89 MM has Grown at -38.24%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Cash and Eqv
Lowest at JPY 9,278.63 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 2.81 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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