HENNGE KK (4475) 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

FURYU CORP.

Bushiroad, Inc.

Avant Group Corp.

Marvelous, Inc.

TDC SOFT, Inc.

Safie Inc.

CAC Holdings Corp.

HENNGE KK

OPTiM Corp.

Broadleaf Co., Ltd.

UNITED, Inc.

Why is HENNGE KK ?

High Management Efficiency with a high ROE of 22.35%

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Net Sales has grown by an annual rate of 21.33% and Operating profit at 19.30%

With a growth in Net Profit of 34.41%, the company declared Very Positive results in Dec 25

The company has declared positive results for the last 8 consecutive quarters
ROCE(HY) Highest at 40.04%
NET SALES(Q) Highest at JPY 3,015.76 MM
RAW MATERIAL COST(Y) Fallen by -1.37% (YoY)

With ROE of 38.33%, it has a fair valuation with a 9.65 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 -34.23%, its profits have risen by 33.8% ; the PEG ratio of the company is 0.7

Below par performance in long term as well as near term

Along with generating -34.23% 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 hold?

Overall Portfolio exposure to HENNGE KK 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 HENNGE KK for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

HENNGE KK

-34.23%

0.19

41.92%

Japan Nikkei 225

65.71%

2.62

25.46%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.33%

EBIT Growth (5y)

19.30%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.50

Sales to Capital Employed (avg)

2.79

Tax Ratio

30.01%

Dividend Payout Ratio

11.79%

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

22.35%

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

9.65

EV to EBIT

14.66

EV to EBITDA

14.07

EV to Capital Employed

-12.96

EV to Sales

2.30

PEG Ratio

0.74

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

38.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

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

12What is working for the Company

ROCE(HY)

Highest at 40.04%

NET SALES(Q)

Highest at JPY 3,015.76 MM

RAW MATERIAL COST(Y)

Fallen by -1.37% (YoY

CASH AND EQV(HY)

Highest at JPY 12,781.64 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 56.89 times

-4What is not working for the Company

INTEREST(9M)

At JPY 4.81 MM has Grown at inf%

Here's what is working for HENNGE KK

Net Sales

Highest at JPY 3,015.76 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

At JPY 3,015.76 MM has Grown at 20.14%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 12,781.64 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 56.89 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -1.37% (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

Here's what is not working for HENNGE KK

Interest

At JPY 4.81 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)