IMAGE MAGIC, Inc. () 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

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IMAGE MAGIC, Inc.

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Why is IMAGE MAGIC, Inc. ?

Weak Long Term Fundamental Strength with a 249.32% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 249.32% of over the last 5 years

Negative results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 4,774.37
DEBT-EQUITY RATIO (HY) Highest at -15.72 %
OPERATING PROFIT(Q) Lowest at JPY 20.86 MM

With ROE of 19.39%, it has a attractive valuation with a 1.97 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 -3.98%, its profits have risen by 22.6% ; the PEG ratio of the company is 0.7

Below par performance in long term as well as near term

Along with generating -3.98% 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 IMAGE MAGIC, Inc. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

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

Is IMAGE MAGIC, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

IMAGE MAGIC, Inc.

-1.37%

0.97

36.01%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.96%

EBIT Growth (5y)

249.32%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

3.84

Tax Ratio

23.64%

Dividend Payout Ratio

23.68%

Pledged Shares

Institutional Holding

ROCE (avg)

23.12%

ROE (avg)

10.73%

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

1.97

EV to EBIT

6.61

EV to EBITDA

4.33

EV to Capital Employed

2.15

EV to Sales

0.35

PEG Ratio

0.73

Dividend Yield

ROCE (Latest)

32.50%

ROE (Latest)

19.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Mildly Bearish

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

7What is working for the Company

ROCE(HY)

Highest at 17.94%

NET SALES(Q)

At JPY 2,283.07 MM has Grown at 22.86%

-18What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 4,774.37

DEBT-EQUITY RATIO (HY)

Highest at -15.72 %

OPERATING PROFIT(Q)

Lowest at JPY 20.86 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.91 %

PRE-TAX PROFIT(Q)

Lowest at JPY -40.24 MM

NET PROFIT(Q)

Lowest at JPY -28.38 MM

EPS(Q)

Lowest at JPY -12.06

Here's what is working for IMAGE MAGIC, Inc.

Net Sales

At JPY 2,283.07 MM has Grown at 22.86%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Here's what is not working for IMAGE MAGIC, Inc.

Pre-Tax Profit

At JPY -40.24 MM has Fallen at -614.98%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -28.38 MM has Fallen at -2,918.27%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 4,774.37

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 20.86 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 0.91 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -40.24 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -28.38 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -12.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at -15.72 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio