ScoreWhy is LIGHTWORKS Corp. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 18.85%
- Healthy long term growth as Net Sales has grown by an annual rate of 15.69% and Operating profit at 24.48%
- Company has very low debt and has enough cash to service the debt requirements
2
Negative results in Jan 25
- INTEREST(HY) At JPY 0.54 MM has Grown at 51.99%
3
With ROE of 21.77%, it has a very attractive valuation with a 11.47 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 118.85%, its profits have risen by 16.7% ; the PEG ratio of the company is 3.2
4
Market Beating Performance
- The stock has generated a return of 118.85% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 11.03%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to LIGHTWORKS Corp. 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 LIGHTWORKS Corp. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
LIGHTWORKS Corp.
118.85%
3.10
37.26%
Japan Nikkei 225
28.54%
0.44
25.06%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.69%
EBIT Growth (5y)
24.48%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-1.16
Sales to Capital Employed (avg)
3.36
Tax Ratio
22.79%
Dividend Payout Ratio
112.08%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
280.16%
ROE (avg)
18.85%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
53
Industry P/E
Price to Book Value
11.47
EV to EBIT
30.58
EV to EBITDA
15.10
EV to Capital Employed
-63.81
EV to Sales
2.73
PEG Ratio
3.16
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
21.77%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 129.19%
RAW MATERIAL COST(Y)
Fallen by -9.75% (YoY
NET PROFIT(Q)
At JPY 46.22 MM has Grown at 71.45%
-10What is not working for the Company
INTEREST(9M)
At JPY 0.84 MM has Grown at 61.07%
INTEREST COVERAGE RATIO(Q)
Lowest at 58,267.31
Here's what is working for LIGHTWORKS Corp.
Inventory Turnover Ratio
Highest at 129.19% and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Profit
At JPY 46.22 MM has Grown at 71.45%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Raw Material Cost
Fallen by -9.75% (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 LIGHTWORKS Corp.
Interest
At JPY 0.58 MM has Grown at 69.28%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 58,267.31
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
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