Interfactory, Inc. (4057) 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

POPER Co., Ltd.

Mobilus Corp.

Computer Management Co., Ltd.

circlace, Inc.

Retty, Inc.

Fines, Inc.

Interfactory, Inc.

Why How Do Co., Inc.

NJ Holdings, Inc.

VALUENEX Japan Inc.

MEDIASEEK, Inc.

Why is Interfactory, Inc. ?

Poor Management Efficiency with a low ROE of 7.72%

The company has been able to generate a Return on Equity (avg) of 7.72% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 33.99

Poor long term growth as Operating profit has grown by an annual rate -0.20% of over the last 5 years

The company has declared negative results in Feb'2025 after 3 consecutive positive quarters

DEBTORS TURNOVER RATIO(HY) Lowest at 4.33%
INTEREST(Q) Highest at JPY 1.56 MM
NET PROFIT(Q) At JPY 24.61 MM has Fallen at -39.78%

With ROE of 14.23%, it has a attractive valuation with a 1.96 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 3.81%, its profits have risen by 256.2% ; the PEG ratio of the company is 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 3.81% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Interfactory, 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 Interfactory, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Interfactory, Inc.

1.18%

-0.20

38.19%

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)

7.89%

EBIT Growth (5y)

-0.20%

EBIT to Interest (avg)

31.39

Debt to EBITDA (avg)

0.12

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

1.81

Tax Ratio

27.97%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

16.97%

ROE (avg)

7.72%

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

1.96

EV to EBIT

11.28

EV to EBITDA

5.75

EV to Capital Employed

1.91

EV to Sales

0.83

PEG Ratio

0.05

Dividend Yield

ROCE (Latest)

16.92%

ROE (Latest)

14.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

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

9What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.33% (YoY

NET PROFIT(9M)

Higher at JPY 125.07 MM

DEBT-EQUITY RATIO (HY)

Lowest at -9.08 %

NET SALES(Q)

Highest at JPY 810.97 MM

-13What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.33%

INTEREST(Q)

Highest at JPY 1.56 MM

NET PROFIT(Q)

At JPY 24.61 MM has Fallen at -39.78%

Here's what is working for Interfactory, Inc.

Net Sales

Highest at JPY 810.97 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 810.97 MM has Grown at 16.95%

over average net sales of the previous four periods of JPY 693.45 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debt-Equity Ratio

Lowest at -9.08 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -2.33% (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

Depreciation

Highest at JPY 52.6 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

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

Interest

At JPY 1.56 MM has Grown at 11.63%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 1.56 MM

in the last five periods and Increased by 11.63% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 24.61 MM has Fallen at -39.78%

over average net sales of the previous four periods of JPY 40.87 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debtors Turnover Ratio

Lowest at 4.33%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio