Nextware Ltd. (4814) 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

SIG Group Co., Ltd

Virtualex Holdings, Inc.

AsiaQuest Co., Ltd.

SYSTEMS DESIGN Co., Ltd.

eXmotion Co., Ltd.

SCAT, Inc.

infoNet Inc.

Softfront Holdings

Sharing Innovations Inc.

Nextware Ltd.

Media Kobo, Inc.

Why is Nextware Ltd. ?

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -34.12

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -34.12
The company has been able to generate a Return on Capital Employed (avg) of 2.43% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -1.08% and Operating profit at -57.81% over the last 5 years

Negative results in Mar 26

ROCE(HY) Lowest at -46.66%
RAW MATERIAL COST(Y) Grown by 33.19% (YoY)
CASH AND EQV(HY) Lowest at JPY 548.59 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -4.76%, its profits have risen by 18.2%

Below par performance in long term as well as near term

Along with generating -4.76% 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 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 Computers - Software & Consulting)

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

Is Nextware Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nextware Ltd.

-100.0%

-0.06

72.11%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.08%

EBIT Growth (5y)

-57.81%

EBIT to Interest (avg)

-93.01

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.37

Sales to Capital Employed (avg)

2.59

Tax Ratio

1.67%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.97%

ROE (avg)

10.00%

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

1.81

EV to EBIT

-15.92

EV to EBITDA

-35.37

EV to Capital Employed

2.07

EV to Sales

0.58

PEG Ratio

Dividend Yield

ROCE (Latest)

-13.00%

ROE (Latest)

-9.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 70.58 times

NET SALES(Q)

At JPY 822.67 MM has Grown at 14.12%

-21What is not working for the Company

ROCE(HY)

Lowest at -46.66%

RAW MATERIAL COST(Y)

Grown by 33.19% (YoY

CASH AND EQV(HY)

Lowest at JPY 548.59 MM

PRE-TAX PROFIT(Q)

Lowest at JPY -131.28 MM

NET PROFIT(Q)

Lowest at JPY -138.25 MM

EPS(Q)

Lowest at JPY -24.5

Here's what is working for Nextware Ltd.

Net Sales

At JPY 822.67 MM has Grown at 14.12%

over average net sales of the previous four periods of JPY 720.85 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 70.58 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at JPY 56.44 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 56.44 MM has Grown at 682.64%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Nextware Ltd.

Pre-Tax Profit

At JPY -131.28 MM has Fallen at -401.57%

over average net sales of the previous four periods of JPY -26.17 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -138.25 MM has Fallen at -424.57%

over average net sales of the previous four periods of JPY -26.36 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY -131.28 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -138.25 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -24.5

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 548.59 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 33.19% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales