Japan Business Systems, 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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Japan Business Systems, Inc.

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Why is Japan Business Systems, Inc. ?

High Management Efficiency with a high ROCE of 14.92%

Healthy long term growth as Net Sales has grown by an annual rate of 970.90% and Operating profit at 244.33%

With a growth in Net Sales of 74.38%, the company declared Very Positive results in Dec 25

NET SALES(Q) At JPY 48,687 MM has Grown at 74.38%
ROCE(HY) Highest at 24.65%
INVENTORY TURNOVER RATIO(HY) Highest at 104.94 times

With ROCE of 15.51%, it has a very attractive valuation with a 2.02 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 45.13%, its profits have fallen by -27%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Japan Business 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 Japan Business Systems, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Japan Business Systems, Inc.

45.13%

1.05

47.41%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

970.90%

EBIT Growth (5y)

244.33%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

1.66

Net Debt to Equity (avg)

0.69

Sales to Capital Employed (avg)

3.43

Tax Ratio

35.89%

Dividend Payout Ratio

32.40%

Pledged Shares

Institutional Holding

ROCE (avg)

14.92%

ROE (avg)

15.67%

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

2.72

EV to EBIT

13.02

EV to EBITDA

11.07

EV to Capital Employed

2.02

EV to Sales

0.57

PEG Ratio

Dividend Yield

ROCE (Latest)

15.51%

ROE (Latest)

16.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

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

21What is working for the Company

NET SALES(Q)

At JPY 48,687 MM has Grown at 74.38%

ROCE(HY)

Highest at 24.65%

INVENTORY TURNOVER RATIO(HY)

Highest at 104.94 times

PRE-TAX PROFIT(Q)

Highest at JPY 2,801 MM

NET PROFIT(Q)

Highest at JPY 1,937 MM

EPS(Q)

Highest at JPY 40.71

-9What is not working for the Company

INTEREST(HY)

At JPY 109 MM has Grown at 67.69%

RAW MATERIAL COST(Y)

Grown by 32.51% (YoY

Here's what is working for Japan Business Systems, Inc.

Net Sales

At JPY 48,687 MM has Grown at 74.38%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 2,801 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,937 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 40.71

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 104.94 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Japan Business Systems, Inc.

Interest

At JPY 109 MM has Grown at 67.69%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 32.51% (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