Japan System Techniques Co., Ltd. (4323) 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

User Local, Inc.

Digital Information Technologies Corp.

oRo Co., Ltd.

ITFOR, Inc.

Japan System Techniques Co., Ltd.

Global Security Experts, Inc.

GMO GlobalSign Holdings KK

Serverworks Co., Ltd.

Access Co., Ltd.

Saison Technology Co., Ltd.

INES Corp.

Why is Japan System Techniques Co., Ltd. ?

Strong Long Term Fundamental Strength with a 26.85% CAGR growth in Operating Profits

Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 58.03% signifying high profitability per unit of total capital (equity and debt)

Flat results in Dec 25

INTEREST(Q) At JPY 2.07 MM has Grown at 20.07%
RAW MATERIAL COST(Y) Grown by 12.53% (YoY)

With ROE of 16.61%, it has a attractive valuation with a 3.19 Price to Book Value

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 9.96%, its profits have risen by 17.7%

Underperformed the market in the last 1 year

The stock has generated a return of 9.96% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Japan System Techniques Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

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

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

Is Japan System Techniques Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Japan System Techniques Co., Ltd.

9.96%

0.74

40.21%

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)

10.23%

EBIT Growth (5y)

26.85%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.48

Sales to Capital Employed (avg)

2.12

Tax Ratio

24.87%

Dividend Payout Ratio

27.21%

Pledged Shares

Institutional Holding

ROCE (avg)

58.00%

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

3.19

EV to EBIT

12.54

EV to EBITDA

11.51

EV to Capital Employed

5.25

EV to Sales

1.36

PEG Ratio

Dividend Yield

ROCE (Latest)

41.84%

ROE (Latest)

16.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

OPERATING CASH FLOW(Y)

Highest at JPY 3,449.59 MM

CASH AND EQV(HY)

Highest at JPY 18,256.39 MM

-11What is not working for the Company

INTEREST(Q)

At JPY 2.07 MM has Grown at 20.07%

RAW MATERIAL COST(Y)

Grown by 12.53% (YoY

Here's what is working for Japan System Techniques Co., Ltd.

Operating Cash Flow

Highest at JPY 3,449.59 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Cash and Eqv

Highest at JPY 18,256.39 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 91.05 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Japan System Techniques Co., Ltd.

Interest

At JPY 2.07 MM has Grown at 20.07%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 12.53% (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

Non Operating Income

Highest at JPY 0.07 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income