NEOJAPAN, Inc. (3921) 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

SERAKU Co., Ltd.

Startia Holdings, Inc.

Ad-Sol Nissin Corp.

HIMACS Ltd.

Focus Systems Corp.

NEOJAPAN, Inc.

Cross Cat Co., Ltd.

Systems Engineering Consultants Co., Ltd.

Cube System Inc.

ISB Corp.

Tecnos Japan Inc.

Why is NEOJAPAN, Inc. ?

High Management Efficiency with a high ROE of 17.14%

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Net Sales has grown by an annual rate of 14.18% and Operating profit at 22.79%

With ROE of 22.42%, it has a very attractive valuation with a 3.49 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 -5.81%, its profits have risen by 48.3% ; the PEG ratio of the company is 0.3

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to NEOJAPAN, 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 NEOJAPAN, Inc. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

NEOJAPAN, Inc.

-5.81%

0.72

36.36%

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)

14.18%

EBIT Growth (5y)

22.79%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.88

Sales to Capital Employed (avg)

1.13

Tax Ratio

30.87%

Dividend Payout Ratio

39.84%

Pledged Shares

Institutional Holding

ROCE (avg)

139.53%

ROE (avg)

17.14%

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

3.49

EV to EBIT

8.45

EV to EBITDA

7.29

EV to Capital Employed

21.75

EV to Sales

2.27

PEG Ratio

0.27

Dividend Yield

ROCE (Latest)

257.30%

ROE (Latest)

22.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

17What is working for the Company

NET PROFIT(9M)

At JPY 1,259.1 MM has Grown at 59.38%

ROCE(HY)

Highest at 26.44%

RAW MATERIAL COST(Y)

Fallen by -4.5% (YoY

CASH AND EQV(HY)

Highest at JPY 10,821.57 MM

NET SALES(Q)

Highest at JPY 1,996.38 MM

OPERATING PROFIT(Q)

Highest at JPY 733.89 MM

OPERATING PROFIT MARGIN(Q)

Highest at 36.76 %

PRE-TAX PROFIT(Q)

Highest at JPY 654.57 MM

EPS(Q)

Highest at JPY 31.91

-10What is not working for the Company

INTEREST(9M)

At JPY 0.04 MM has Grown at 82.61%

INTEREST COVERAGE RATIO(Q)

Lowest at 3,057,891.67

Here's what is working for NEOJAPAN, Inc.

Net Sales

Highest at JPY 1,996.38 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 733.89 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 36.76 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 654.57 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 447.37 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 31.91

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 10,821.57 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -4.5% (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 NEOJAPAN, Inc.

Interest

At JPY 0.03 MM has Grown at 466.67%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 3,057,891.67

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest