ScoreWhy is HPC Systems, Inc. ?
1
Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 24.30%
- Healthy long term growth as Net Sales has grown by an annual rate of 7.77%
- Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 79.98
2
With a growth in Net Profit of 30.16%, the company declared Very Positive results in Dec 25
- The company has declared positive results for the last 2 consecutive quarters
- NET PROFIT(HY) At JPY 241.22 MM has Grown at 68.51%
- ROCE(HY) Highest at 23.11%
- RAW MATERIAL COST(Y) Fallen by -21.03% (YoY)
3
With ROCE of 31.75%, it has a very attractive valuation with a 3.63 Enterprise value to Capital Employed
- 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 40.36%, its profits have risen by 4.7% ; the PEG ratio of the company is 4.2
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to HPC Systems, 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 HPC Systems, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
HPC Systems, Inc.
40.36%
0.33
58.94%
Japan Nikkei 225
38.94%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.77%
EBIT Growth (5y)
7.77%
EBIT to Interest (avg)
79.98
Debt to EBITDA (avg)
2.78
Net Debt to Equity (avg)
-0.31
Sales to Capital Employed (avg)
2.05
Tax Ratio
33.83%
Dividend Payout Ratio
27.56%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
24.30%
ROE (avg)
16.16%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
2.82
EV to EBIT
11.42
EV to EBITDA
10.27
EV to Capital Employed
3.63
EV to Sales
0.92
PEG Ratio
4.16
Dividend Yield
NA
ROCE (Latest)
31.75%
ROE (Latest)
14.89%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
NET PROFIT(HY)
At JPY 241.22 MM has Grown at 68.51%
ROCE(HY)
Highest at 23.11%
RAW MATERIAL COST(Y)
Fallen by -21.03% (YoY
-2What is not working for the Company
INTEREST(Q)
At JPY 1.39 MM has Grown at 21.11%
Here's what is working for HPC Systems, Inc.
Net Profit
At JPY 241.22 MM has Grown at 68.51%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Raw Material Cost
Fallen by -21.03% (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 HPC Systems, Inc.
Interest
At JPY 1.39 MM has Grown at 21.11%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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