IPS Inc. /Japan/ (4390) 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

SoftBank Group Corp.

U-NEXT HOLDINGS Co., Ltd.

Benefit Japan Co., Ltd.

Fibergate, Inc.

IPS Inc. /Japan/

AI CROSS, Inc.

Techfirm Holdings, Inc.

Accrete, Inc.

Kanda Tsushinki Co., Ltd.

JTOWER, Inc.

Giga Prize Co., Ltd.

Why is IPS Inc. /Japan/ ?

High Management Efficiency with a high ROCE of 35.67%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 55.59

Healthy long term growth as Net Sales has grown by an annual rate of 18.59% and Operating profit at 32.76%

NET PROFIT(HY) At JPY 802.05 MM has Grown at -68.4%
DEBTORS TURNOVER RATIO(HY) Lowest at 1.04%
INVENTORY TURNOVER RATIO(HY) Lowest at 24.63%

With ROCE of 20.36%, it has a very attractive valuation with a 1.65 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 18.15%, its profits have fallen by -2%

Underperformed the market in the last 1 year

The stock has generated a return of 18.15% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.59%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to IPS Inc. /Japan/ should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

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

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

Is IPS Inc. /Japan/ for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

IPS Inc. /Japan/

18.15%

0.84

45.16%

Japan Nikkei 225

38.59%

1.45

26.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.59%

EBIT Growth (5y)

32.76%

EBIT to Interest (avg)

55.59

Debt to EBITDA (avg)

0.49

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

0.63

Tax Ratio

14.97%

Dividend Payout Ratio

20.29%

Pledged Shares

Institutional Holding

ROCE (avg)

35.67%

ROE (avg)

27.44%

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

1.91

EV to EBIT

8.11

EV to EBITDA

6.63

EV to Capital Employed

1.65

EV to Sales

2.35

PEG Ratio

Dividend Yield

ROCE (Latest)

20.36%

ROE (Latest)

22.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

4What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,791.55

RAW MATERIAL COST(Y)

Fallen by -5.84% (YoY

-16What is not working for the Company

NET PROFIT(HY)

At JPY 802.05 MM has Grown at -68.4%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.04%

INVENTORY TURNOVER RATIO(HY)

Lowest at 24.63%

NET SALES(Q)

Lowest at JPY 3,422 MM

Here's what is working for IPS Inc. /Japan/

Interest Coverage Ratio

Highest at 1,791.55

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Raw Material Cost

Fallen by -5.84% (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 IPS Inc. /Japan/

Net Profit

At JPY 802.05 MM has Grown at -68.4%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

At JPY 3,422 MM has Fallen at -10.32%

over average net sales of the previous four periods of JPY 3,816 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Debtors Turnover Ratio

Lowest at 1.04% and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at JPY 3,422 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Inventory Turnover Ratio

Lowest at 24.63%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio