Why is Neural Group, Inc. ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Operating profit has grown by an annual rate -14.01% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
The company has declared negative results in Mar'2025 after 3 consecutive positive quarters
- PRE-TAX PROFIT(Q) At JPY 4.74 MM has Fallen at -82.91%
- NET PROFIT(Q) At JPY -8.84 MM has Fallen at -294.35%
- CASH AND EQV(HY) Lowest at JPY 1,371.29 MM
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -45.15% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods
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 Neural Group, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Neural Group, Inc.
-45.15%
-1.04
52.26%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
42.01%
EBIT Growth (5y)
-14.01%
EBIT to Interest (avg)
-2.63
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
2.03
Sales to Capital Employed (avg)
1.24
Tax Ratio
83.79%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.50%
ROE (avg)
3.74%
Valuation Key Factors 
Factor
Value
P/E Ratio
636
Industry P/E
Price to Book Value
18.38
EV to EBIT
96.97
EV to EBITDA
44.39
EV to Capital Employed
6.74
EV to Sales
3.39
PEG Ratio
6.16
Dividend Yield
NA
ROCE (Latest)
6.95%
ROE (Latest)
2.89%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Bearish
Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
13What is working for the Company
NET PROFIT(HY)
Higher at JPY -38.44 MM
ROCE(HY)
Highest at 8.06%
INVENTORY TURNOVER RATIO(HY)
Highest at 5.18%
DEBT-EQUITY RATIO
(HY)
Lowest at 192.07 %
-18What is not working for the Company
PRE-TAX PROFIT(Q)
At JPY 4.74 MM has Fallen at -82.91%
NET PROFIT(Q)
At JPY -8.84 MM has Fallen at -294.35%
CASH AND EQV(HY)
Lowest at JPY 1,371.29 MM
INTEREST(Q)
Highest at JPY 7.01 MM
Here's what is working for Neural Group, Inc.
Inventory Turnover Ratio
Highest at 5.18% 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
Debt-Equity Ratio
Lowest at 192.07 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Neural Group, Inc.
Pre-Tax Profit
At JPY 4.74 MM has Fallen at -82.91%
over average net sales of the previous four periods of JPY 27.73 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY -8.84 MM has Fallen at -294.35%
over average net sales of the previous four periods of JPY 4.55 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 7.01 MM has Grown at 18.01%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 7.01 MM
in the last five periods and Increased by 18.01% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Cash and Eqv
Lowest at JPY 1,371.29 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents






