GungHo Online Entertainment, Inc. (3765) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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GungHo Online Entertainment, Inc.

Why is GungHo Online Entertainment, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate -7.37% of over the last 5 years

The company has declared negative results for the last 7 consecutive quarters

INTEREST(HY) At JPY 14 MM has Grown at 75%
INTEREST COVERAGE RATIO(Q) Lowest at 34,785.71
ROCE(HY) Lowest at 4.66%

With ROE of 10.36%, it has a very attractive valuation with a 1.89 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 -20.42%, its profits have fallen by -40.1%

Below par performance in long term as well as near term

Along with generating -20.42% 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 GungHo Online Entertainment, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

GungHo Online Entertainment, Inc.

-20.42%

-0.41

27.93%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.33%

EBIT Growth (5y)

-7.37%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.80

Sales to Capital Employed (avg)

0.91

Tax Ratio

23.56%

Dividend Payout Ratio

32.85%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

59.13%

ROE (avg)

18.67%

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

1.89

EV to EBIT

9.34

EV to EBITDA

8.74

EV to Capital Employed

5.52

EV to Sales

1.29

PEG Ratio

Dividend Yield

ROCE (Latest)

59.13%

ROE (Latest)

10.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

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

1What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -110.77 %

-31What is not working for the Company

INTEREST(HY)

At JPY 14 MM has Grown at 75%

INTEREST COVERAGE RATIO(Q)

Lowest at 34,785.71

ROCE(HY)

Lowest at 4.66%

RAW MATERIAL COST(Y)

Grown by 15.44% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 0%

PRE-TAX PROFIT(Q)

Lowest at JPY 2,127 MM

NET PROFIT(Q)

Lowest at JPY 872.9 MM

EPS(Q)

Lowest at JPY 15.74

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

Debt-Equity Ratio

Lowest at -110.77 %

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 14 MM has Grown at 75%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 34,785.71 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 872.9 MM has Fallen at -60.91%

over average net sales of the previous four periods of JPY 2,233.11 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 2,127 MM has Fallen at -47.81%

over average net sales of the previous four periods of JPY 4,075.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 2,127 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 872.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 15.74

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 0%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 15.44% (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