HPC Systems, Inc. (6597) 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

HPC Systems, Inc.

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CREO Co., Ltd.

Mobile Factory, Inc.

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coconala, Inc.

Gala, Inc.

Aeria, Inc.

Prime Strategy Co., Ltd.

Why is HPC Systems, Inc. ?

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

Positive results in Jun 25

PRE-TAX PROFIT(Q) At JPY 50.86 MM has Grown at 477.19%
NET PROFIT(Q) At JPY 29.52 MM has Grown at 387.5%
DEBT-EQUITY RATIO (HY) Lowest at -59.78 %

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 49.73%, its profits have risen by 4.7% ; the PEG ratio of the company is 4.2

Market Beating Performance

The stock has generated a return of 49.73% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How 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.

51.56%

0.32

61.12%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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)

1.93

Tax Ratio

33.83%

Dividend Payout Ratio

27.56%

Pledged Shares

Institutional Holding

ROCE (avg)

24.30%

ROE (avg)

16.16%

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

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

ROCE (Latest)

31.75%

ROE (Latest)

14.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

13What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 50.86 MM has Grown at 477.19%

NET PROFIT(Q)

At JPY 29.52 MM has Grown at 387.5%

DEBT-EQUITY RATIO (HY)

Lowest at -59.78 %

RAW MATERIAL COST(Y)

Fallen by -25.38% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 5.31

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for HPC Systems, Inc.

Pre-Tax Profit

At JPY 50.86 MM has Grown at 477.19%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 29.52 MM has Grown at 387.5%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at -59.78 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at JPY 5.31

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -25.38% (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