IBJ, Inc. (6071) 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

Digital Information Technologies Corp.

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Toho System Science Co., Ltd.

IBJ, Inc.

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GMO GlobalSign Holdings KK

I-NET Corp.

Quantum Solutions Co., Ltd.

Why is IBJ, Inc. ?

Weak Long Term Fundamental Strength with a 23.65% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 23.65% of over the last 5 years

Negative results in Jun 26

INTEREST COVERAGE RATIO(Q) Lowest at 3,107.53
RAW MATERIAL COST(Y) Grown by 8.15% (YoY)
INTEREST(Q) Highest at JPY 45.04 MM

With ROE of 26.53%, it has a very attractive valuation with a 2.97 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 13.53%, its profits have risen by 52% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 13.53% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 56.30%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to IBJ, Inc. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is IBJ, Inc. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

IBJ, Inc.

-100.0%

1.53

34.04%

Japan Nikkei 225

56.3%

1.91

29.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.06%

EBIT Growth (5y)

23.65%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.16

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

1.26

Tax Ratio

33.06%

Dividend Payout Ratio

18.22%

Pledged Shares

Institutional Holding

ROCE (avg)

32.77%

ROE (avg)

21.38%

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

2.97

EV to EBIT

7.79

EV to EBITDA

6.11

EV to Capital Employed

2.92

EV to Sales

1.43

PEG Ratio

0.22

Dividend Yield

ROCE (Latest)

37.51%

ROE (Latest)

26.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

8What is working for the Company

CASH AND EQV(HY)

Highest at JPY 21,266.32 MM

NET SALES(Q)

At JPY 6,621.95 MM has Grown at 16.28%

-18What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 3,107.53

RAW MATERIAL COST(Y)

Grown by 8.15% (YoY

INTEREST(Q)

Highest at JPY 45.04 MM

NET PROFIT(Q)

At JPY 438.99 MM has Fallen at -33.82%

EPS(Q)

Lowest at JPY 5.5

Here's what is working for IBJ, Inc.

Net Sales

At JPY 6,621.95 MM has Grown at 16.28%

over average net sales of the previous four periods of JPY 5,694.84 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 21,266.32 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for IBJ, Inc.

Interest Coverage Ratio

Lowest at 3,107.53

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 45.04 MM

in the last five periods and Increased by 6% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 438.99 MM has Fallen at -33.82%

over average net sales of the previous four periods of JPY 663.31 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 5.5

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 8.15% (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