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GungHo Online Entertainment, Inc.

  • Market Cap: Small Cap
  • Industry: Software Products
  • ISIN: JP3235900002
  • TKS: 3765
JPY
2,489.00
-219 (-8.09%)

Sep 25

TKS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
RAKUS Co., Ltd.
KONAMI Group Corp.
NSD Co., Ltd.
OBIC Business Consultants Co., Ltd.
Koei Tecmo Holdings Co., Ltd.
Oracle Corp Japan
Trend Micro, Inc.
Square Enix Holdings Co., Ltd.
Sega Sammy Holdings, Inc.
GungHo Online Entertainment, Inc.
Money Forward, Inc.

Why is GungHo Online Entertainment, Inc. ?

1
Weak Long Term Fundamental Strength with a -30.09% CAGR growth in Operating Profits over the last 5 years
2
Poor long term growth as Operating profit has grown by an annual rate -30.09% of over the last 5 years
3
Flat results in Jun 26
  • NET PROFIT(9M) At JPY 2,186.71 MM has Grown at -46.22%
  • INTEREST(Q) At JPY 7 MM has Grown at 16.67%
4
With ROE of 4.25%, it has a very attractive valuation with a 1.30 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 -9.08%, its profits have fallen by -60.5%
5
Majority shareholders : Non Institution
6
Underperformed the market in the last 1 year
  • Even though the market (Japan Nikkei 225) has generated returns of 43.58% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.08% returns
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to GungHo Online Entertainment, Inc. should be less than 10%
  2. 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 GungHo Online Entertainment, Inc. for you?

Low Risk, Low Return

Absolute
Risk Adjusted
Volatility
GungHo Online Entertainment, Inc.
-100.0%
-0.32
25.85%
Japan Nikkei 225
43.58%
1.48
29.43%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
-2.32%
EBIT Growth (5y)
-30.09%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.80
Sales to Capital Employed (avg)
0.85
Tax Ratio
40.22%
Dividend Payout Ratio
349.11%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
59.13%
ROE (avg)
18.67%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
31
Industry P/E
Price to Book Value
1.30
EV to EBIT
3.69
EV to EBITDA
3.14
EV to Capital Employed
-1.67
EV to Sales
0.23
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
4.25%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bullish
Bearish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company
DEBTORS TURNOVER RATIO(HY)

Highest at 8.17 times

DEBT-EQUITY RATIO (HY)

Lowest at -111.72 %

PRE-TAX PROFIT(Q)

At JPY 3,334 MM has Grown at 64.03%

NET PROFIT(Q)

Highest at JPY 1,824.78 MM

EPS(Q)

Highest at JPY 33.13

-8What is not working for the Company
NET PROFIT(9M)

At JPY 2,186.71 MM has Grown at -46.22%

INTEREST(Q)

At JPY 7 MM has Grown at 16.67%

Here's what is working for GungHo Online Entertainment, Inc.

Net Profit
At JPY 1,824.78 MM has Grown at 331.96%
over average net sales of the previous four periods of JPY 422.44 MM
MOJO Watch
Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debtors Turnover Ratio
Highest at 8.17 times and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Pre-Tax Profit
At JPY 3,334 MM has Grown at 64.03%
over average net sales of the previous four periods of JPY 2,032.5 MM
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit
Highest at JPY 1,824.78 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS
Highest at JPY 33.13
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio
Lowest at -111.72 %
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 GungHo Online Entertainment, Inc.

Interest
At JPY 7 MM has Grown at 16.67%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

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