Koei Tecmo Holdings Co., Ltd. (3635) 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

RAKUS Co., Ltd.

Capcom Co., Ltd.

NSD Co., Ltd.

KONAMI Group Corp.

Trend Micro, Inc.

OBIC Business Consultants Co., Ltd.

Koei Tecmo Holdings Co., Ltd.

Oracle Corp Japan

Square Enix Holdings Co., Ltd.

Money Forward, Inc.

Sega Sammy Holdings, Inc.

Why is Koei Tecmo Holdings Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 21.00%

Healthy long term growth as Net Sales has grown by an annual rate of 14.29% and Operating profit at 17.89%
Company has very low debt and has enough cash to service the debt requirements

The company declared positive results in Mar'25 after negative results in Dec'24

With ROCE of 22.16%, it has a very attractive valuation with a 5.05 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 9.98%, its profits have risen by 48.8% ; the PEG ratio of the company is 0.4

Underperformed the market in the last 1 year

The stock has generated a return of 9.98% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Koei Tecmo Holdings Co., Ltd. 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 Koei Tecmo Holdings Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Koei Tecmo Holdings Co., Ltd.

9.98%

1.36

28.45%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.29%

EBIT Growth (5y)

17.89%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.15

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

0.39

Tax Ratio

24.73%

Dividend Payout Ratio

50.36%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

20.99%

ROE (avg)

22.00%

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

4.10

EV to EBIT

22.81

EV to EBITDA

21.52

EV to Capital Employed

5.05

EV to Sales

8.81

PEG Ratio

0.38

Dividend Yield

ROCE (Latest)

22.16%

ROE (Latest)

22.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-17What is not working for the Company

ROCE(HY)

Lowest at 16.48%

RAW MATERIAL COST(Y)

Grown by 11.72% (YoY

NET SALES(Q)

Lowest at JPY 14,800 MM

OPERATING PROFIT(Q)

Lowest at JPY 4,024 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 27.19 %

PRE-TAX PROFIT(Q)

Lowest at JPY 5,552 MM

NET PROFIT(Q)

Lowest at JPY 3,844.06 MM

Here's what is not working for Koei Tecmo Holdings Co., Ltd.

Net Sales

At JPY 14,800 MM has Fallen at -28.8%

over average net sales of the previous four periods of JPY 20,787.5 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 5,552 MM has Fallen at -58.79%

over average net sales of the previous four periods of JPY 13,472.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 3,844.06 MM has Fallen at -63.62%

over average net sales of the previous four periods of JPY 10,567.54 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 14,800 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 4,024 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 27.19 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 5,552 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 3,844.06 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Raw Material Cost

Grown by 11.72% (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