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Japan Business Systems, Inc.

  • Market Cap: Small Cap
  • Industry: Software Products
  • ISIN: JP3746810005
JPY
1,593.00
22 (1.4%)

Sep 18

TKS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Sansan, Inc.
Argo Graphics, Inc.
Base Co., Ltd.
Cybozu, Inc.
WingArc1st Inc.
CHANGE Holdings, Inc.
COLOPL, Inc.
Japan Business Systems, Inc.
GREE, Inc.
Infomart Corp.
PKSHA Technology, Inc.

Why is Japan Business Systems, Inc. ?

1
Flat results in Jun 26
  • INTEREST COVERAGE RATIO(Q) Lowest at 2,544.16
  • DEBT-EQUITY RATIO (HY) Highest at 72.48 %
  • DEBTORS TURNOVER RATIO(HY) Lowest at 4.59 times
2
With ROCE of 18.59%, it has a attractive valuation with a 1.95 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 1.21%, its profits have risen by 62.8% ; the PEG ratio of the company is 0.2
3
Underperformed the market in the last 1 year
  • The stock has generated a return of 1.21% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 43.52%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Japan Business Systems, Inc. should be less than 10%
  2. 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.
1.21%
1.34
41.24%
Japan Nikkei 225
43.52%
1.48
29.43%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
649.83%
EBIT Growth (5y)
332.83%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
1.67
Net Debt to Equity (avg)
0.69
Sales to Capital Employed (avg)
3.53
Tax Ratio
19.93%
Dividend Payout Ratio
32.40%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
15.84%
ROE (avg)
15.67%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
2.49
EV to EBIT
10.48
EV to EBITDA
9.19
EV to Capital Employed
1.95
EV to Sales
0.44
PEG Ratio
0.16
Dividend Yield
NA
ROCE (Latest)
18.59%
ROE (Latest)
24.05%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company
ROCE(HY)

Highest at 26.1%

INVENTORY TURNOVER RATIO(HY)

Highest at 110.05 times

NET SALES(Q)

Highest at JPY 81,490 MM

-16What is not working for the Company
INTEREST COVERAGE RATIO(Q)

Lowest at 2,544.16

DEBT-EQUITY RATIO (HY)

Highest at 72.48 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.59 times

INTEREST(Q)

Highest at JPY 77 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.4 %

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

Inventory Turnover Ratio
Highest at 110.05 times and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales
Highest at JPY 81,490 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (JPY MM)

Net Sales
At JPY 81,490 MM has Grown at 17.39%
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 77 MM has Grown at 20.31%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio
Lowest at 2,544.16
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 77 MM
in the last five periods and Increased by 20.31% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin
Lowest at 2.4 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio
Highest at 72.48 %
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 4.59 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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