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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Cybozu, Inc.

Base Co., Ltd.

CHANGE Holdings, Inc.

Argo Graphics, Inc.

Japan Business Systems, Inc.

Infomart Corp.

Sansan, Inc.

WingArc1st Inc.

GREE, Inc.

COLOPL, Inc.

PKSHA Technology, Inc.

Why is Japan Business Systems, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (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%
Company has very low debt and has enough cash to service the debt requirements

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 76.81%, its profits have fallen by -27%

Market Beating Performance

The stock has generated a return of 76.81% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 27.57%

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?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Japan Business Systems, Inc.

76.81%

1.23

47.04%

Japan Nikkei 225

27.57%

1.07

25.74%

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)

3.41

Tax Ratio

35.89%

Dividend Payout Ratio

75.27%

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

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

OBV

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

16What is working for the Company

NET PROFIT(Q)

At JPY 902.36 MM has Grown at 578.46%

ROCE(HY)

Highest at 21.12%

NET SALES(Q)

Highest at JPY 69,420 MM

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 3,830.43

RAW MATERIAL COST(Y)

Grown by 16.5% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 64.37 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.82%

INTEREST(Q)

Highest at JPY 46 MM

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

Net Profit

At JPY 902.36 MM has Grown at 578.46%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 69,420 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 69,420 MM has Grown at 32.96%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

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

Interest

At JPY 46 MM has Grown at 21.05%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 3,830.43

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 46 MM

in the last five periods and Increased by 21.05% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 64.37 %

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

Debtors Turnover Ratio

Lowest at 4.82%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 16.5% (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