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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Sansan, Inc.

WingArc1st Inc.

Japan Business Systems, Inc.

Infomart Corp.

COLOPL, Inc.

PKSHA Technology, Inc.

GREE, Inc.

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 651.62% and Operating profit at 317.79%

Positive results in Mar 26

NET SALES(HY) At JPY 86,377 MM has Grown at 37.78%
ROCE(HY) Highest at 25.43%
RAW MATERIAL COST(Y) Fallen by -3.22% (YoY)

With ROCE of 18.45%, it has a attractive valuation with a 2.17 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 -1.70%, its profits have risen by 60.4% ; the PEG ratio of the company is 0.2

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, Low Return

Absolute

Risk Adjusted

Volatility

Japan Business Systems, Inc.

-2.25%

1.01

40.28%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

651.62%

EBIT Growth (5y)

317.79%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

1.66

Net Debt to Equity (avg)

0.69

Sales to Capital Employed (avg)

3.53

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

2.87

EV to EBIT

11.74

EV to EBITDA

10.25

EV to Capital Employed

2.17

EV to Sales

0.49

PEG Ratio

0.21

Dividend Yield

ROCE (Latest)

18.45%

ROE (Latest)

23.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

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

15What is working for the Company

NET SALES(HY)

At JPY 86,377 MM has Grown at 37.78%

ROCE(HY)

Highest at 25.43%

RAW MATERIAL COST(Y)

Fallen by -3.22% (YoY

OPERATING PROFIT(Q)

Highest at JPY 3,203 MM

OPERATING PROFIT MARGIN(Q)

Highest at 8.5 %

PRE-TAX PROFIT(Q)

Highest at JPY 2,872 MM

NET PROFIT(Q)

Highest at JPY 2,335 MM

EPS(Q)

Highest at JPY 49.69

-12What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.66 times

INTEREST(Q)

Highest at JPY 64 MM

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

Net Sales

At JPY 86,377 MM has Grown at 37.78%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 3,203 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 8.5 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 2,872 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 2,335 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 49.69

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -3.22% (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 Japan Business Systems, Inc.

Interest

At JPY 64 MM has Grown at 20.75%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 64 MM

in the last five periods and Increased by 20.75% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 5.66 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio