ScoreComparison
Why is GungHo Online Entertainment, Inc. ?
1
High Management Efficiency with a high ROE of 18.67%
2
Company has very low debt and has enough cash to service the debt requirements
3
Poor long term growth as Operating profit has grown by an annual rate -30.03% of over the last 5 years
4
The company has declared Negative results for the last 11 consecutive quarters
- NET PROFIT(HY) At JPY 361.93 MM has Grown at -88.66%
- INTEREST(HY) At JPY 13 MM has Grown at 18.18%
- NET SALES(HY) At JPY 46,241 MM has Grown at -9.14%
5
With ROE of 3.64%, it has a very attractive valuation with a 1.47 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 -22.19%, its profits have fallen by -70.5%
6
Majority shareholders : Non Institution
7
Below par performance in long term as well as near term
- Along with generating -22.19% 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 GungHo Online Entertainment, 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 GungHo Online Entertainment, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
GungHo Online Entertainment, Inc.
-20.15%
-0.88
23.94%
Japan Nikkei 225
88.41%
3.25
27.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-1.16%
EBIT Growth (5y)
-30.03%
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
23.56%
Dividend Payout Ratio
349.11%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
59.13%
ROE (avg)
18.67%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
40
Industry P/E
Price to Book Value
1.47
EV to EBIT
9.10
EV to EBITDA
7.58
EV to Capital Employed
-3.87
EV to Sales
0.49
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
3.64%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
NET SALES(Q)
At JPY 26,594 MM has Grown at 14.09%
OPERATING PROFIT(Q)
Highest at JPY 3,952 MM
OPERATING PROFIT MARGIN(Q)
Highest at 14.86 %
PRE-TAX PROFIT(Q)
Highest at JPY 4,575 MM
NET PROFIT(Q)
Highest at JPY 1,703.93 MM
EPS(Q)
Highest at JPY 31.14
-21What is not working for the Company
NET PROFIT(HY)
At JPY 361.93 MM has Grown at -88.66%
INTEREST(HY)
At JPY 13 MM has Grown at 18.18%
NET SALES(HY)
At JPY 46,241 MM has Grown at -9.14%
ROCE(HY)
Lowest at 1.27%
RAW MATERIAL COST(Y)
Grown by 7.37% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 8.02 times
Here's what is working for GungHo Online Entertainment, Inc.
Net Profit
At JPY 1,703.93 MM has Grown at 327.09%
over average net sales of the previous four periods of JPY 398.96 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Pre-Tax Profit
At JPY 4,575 MM has Grown at 169.95%
over average net sales of the previous four periods of JPY 1,694.75 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Sales
At JPY 26,594 MM has Grown at 14.09%
over average net sales of the previous four periods of JPY 23,310.5 MMMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 3,952 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 14.86 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 4,575 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 1,703.93 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 31.14
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Here's what is not working for GungHo Online Entertainment, Inc.
Interest
At JPY 13 MM has Grown at 18.18%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debtors Turnover Ratio
Lowest at 8.02 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 7.37% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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