LIGUA, Inc. (7090) 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

POPER Co., Ltd.

Edia Co., Ltd.

IPS Co., Ltd.

Retty, Inc.

Interfactory, Inc.

NJ Holdings, Inc.

CS-C. Co., Ltd.

VALUENEX Japan Inc.

LIGUA, Inc.

Silver Egg Technology Co., Ltd.

MEDIASEEK, Inc.

Why is LIGUA, Inc. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate -188.30% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 8.78% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(HY) At JPY -219.43 MM has Grown at -2,802.87%
INTEREST(HY) At JPY 15.87 MM has Grown at 32.98%
INVENTORY TURNOVER RATIO(HY) Lowest at 3.81%

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -9.54%, its profits have fallen by -336.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.54% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is LIGUA, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

LIGUA, Inc.

-9.54%

-0.47

67.85%

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)

1.68%

EBIT Growth (5y)

-188.30%

EBIT to Interest (avg)

2.09

Debt to EBITDA (avg)

1.41

Net Debt to Equity (avg)

2.34

Sales to Capital Employed (avg)

1.15

Tax Ratio

77.52%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

10.07%

ROE (avg)

8.78%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

4.74

EV to EBIT

-15.07

EV to EBITDA

-27.69

EV to Capital Employed

2.12

EV to Sales

0.79

PEG Ratio

Dividend Yield

ROCE (Latest)

-14.05%

ROE (Latest)

-92.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.76% (YoY

OPERATING PROFIT(Q)

Highest at JPY 4.32 MM

OPERATING PROFIT MARGIN(Q)

Highest at 0.65 %

PRE-TAX PROFIT(Q)

At JPY -16.39 MM has Grown at 61.44%

-27What is not working for the Company

NET PROFIT(HY)

At JPY -219.43 MM has Grown at -2,802.87%

INTEREST(HY)

At JPY 15.87 MM has Grown at 32.98%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.81%

NET SALES(Q)

At JPY 667.39 MM has Fallen at -7.06%

Here's what is working for LIGUA, Inc.

Operating Profit

Highest at JPY 4.32 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 0.65 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY -16.39 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY -16.39 MM has Grown at 61.44%

over average net sales of the previous four periods of JPY -42.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by -5.76% (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 LIGUA, Inc.

Net Profit

At JPY -219.43 MM has Grown at -2,802.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 15.87 MM has Grown at 32.98%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 3.81% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

At JPY 667.39 MM has Fallen at -7.06%

over average net sales of the previous four periods of JPY 718.09 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)