Needs Well, Inc. (3992) 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

Flect Co., Ltd.

Ad-Sol Nissin Corp.

NEOJAPAN, Inc.

YE Digital Corp.

Needs Well, Inc.

Focus Systems Corp.

ISB Corp.

Uluru Co., Ltd.

Scala, Inc. (Japan)

J-Stream, Inc.

Tecnos Japan Inc.

Why is Needs Well, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 17.28%

Healthy long term growth as Net Sales has grown by an annual rate of 13.81% and Operating profit at 17.84%
Company has very low debt and has enough cash to service the debt requirements

Flat results in Mar 26

ROCE(HY) Lowest at 17.52%
PRE-TAX PROFIT(Q) At JPY 205.47 MM has Fallen at -47.49%
OPERATING PROFIT(Q) Lowest at JPY 222.97 MM

With ROE of 20.19%, it has a attractive valuation with a 4.76 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 -16.60%, its profits have risen by 17.7% ; the PEG ratio of the company is 1.3

Below par performance in long term as well as near term

Along with generating -16.60% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Needs Well, Inc. 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 Needs Well, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Needs Well, Inc.

-16.1%

0.21

32.02%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.81%

EBIT Growth (5y)

17.84%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.48

Sales to Capital Employed (avg)

2.22

Tax Ratio

35.91%

Dividend Payout Ratio

51.25%

Pledged Shares

Institutional Holding

ROCE (avg)

64.08%

ROE (avg)

17.28%

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

4.76

EV to EBIT

16.30

EV to EBITDA

14.79

EV to Capital Employed

7.75

EV to Sales

1.96

PEG Ratio

1.33

Dividend Yield

ROCE (Latest)

47.53%

ROE (Latest)

20.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

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

1What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -57.43 %

-8What is not working for the Company

ROCE(HY)

Lowest at 17.52%

PRE-TAX PROFIT(Q)

At JPY 205.47 MM has Fallen at -47.49%

OPERATING PROFIT(Q)

Lowest at JPY 222.97 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.51 %

NET PROFIT(Q)

Lowest at JPY 137.86 MM

Here's what is working for Needs Well, Inc.

Debt-Equity Ratio

Lowest at -57.43 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Needs Well, Inc.

Pre-Tax Profit

At JPY 205.47 MM has Fallen at -47.49%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Operating Profit

Lowest at JPY 222.97 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 8.51 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at JPY 137.86 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

Fallen at -47.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)