Link & Motivation, Inc. (2170) 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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Open Up Group, Inc.

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Link & Motivation, Inc.

Pasona Group, Inc.

SMS Co., Ltd.

dip Corp.

en Japan, Inc.

Why is Link & Motivation, Inc. ?

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(HY) At JPY -29 MM has Grown at -101.49%
INTEREST COVERAGE RATIO(Q) Lowest at 3,607.27
ROCE(HY) Lowest at 14.41%

With ROE of 17.57%, it has a very expensive valuation with a 4.82 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 20.58%, its profits have fallen by -49.6%

Underperformed the market in the last 1 year

The stock has generated a return of 20.58% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 61.01%

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 Diversified Commercial Services)

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

Is Link & Motivation, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Link & Motivation, Inc.

21.21%

1.23

30.66%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.19%

EBIT Growth (5y)

26.20%

EBIT to Interest (avg)

42.73

Debt to EBITDA (avg)

0.59

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

1.69

Tax Ratio

52.67%

Dividend Payout Ratio

106.94%

Pledged Shares

Institutional Holding

ROCE (avg)

32.58%

ROE (avg)

21.91%

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

4.82

EV to EBIT

11.46

EV to EBITDA

8.71

EV to Capital Employed

3.41

EV to Sales

1.58

PEG Ratio

Dividend Yield

ROCE (Latest)

29.71%

ROE (Latest)

17.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 5,675 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 9.98

NET PROFIT(Q)

At JPY 867 MM has Grown at 113.81%

RAW MATERIAL COST(Y)

Fallen by -4.32% (YoY

CASH AND EQV(HY)

Highest at JPY 18,877 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 72.89 times

-26What is not working for the Company

NET PROFIT(HY)

At JPY -29 MM has Grown at -101.49%

INTEREST COVERAGE RATIO(Q)

Lowest at 3,607.27

ROCE(HY)

Lowest at 14.41%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 52.08%

DEBT-EQUITY RATIO (HY)

Highest at 75.15 %

INTEREST(Q)

Highest at JPY 55 MM

Here's what is working for Link & Motivation, Inc.

Operating Cash Flow

Highest at JPY 5,675 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)

Net Profit

At JPY 867 MM has Grown at 113.81%

over average net sales of the previous four periods of JPY 405.5 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Dividend per share

Highest at JPY 9.98 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Cash and Eqv

Highest at JPY 18,877 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 72.89 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -4.32% (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 Link & Motivation, Inc.

Interest Coverage Ratio

Lowest at 3,607.27 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At JPY 55 MM has Grown at 14.58%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 55 MM

in the last five periods and Increased by 14.58% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 75.15 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend Payout Ratio

Lowest at 52.08%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)