Nippon Ichi Software, Inc. (3851) 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

Axis Co., Ltd. (Tokyo)

SMN Corp.

Sinops, Inc.

Showa System Engineering Corp.

BlueMeme, Inc.

Dawn Corp.

Nippon Ichi Software, Inc.

Nulab, Inc. (Japan)

ImageONE Co., Ltd.

Ficha, Inc.

All About, Inc.

Why is Nippon Ichi Software, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of 9.73% and Operating profit at -190.20% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

NET SALES(HY) At JPY 1,741.12 MM has Grown at -35.12%
ROCE(HY) Lowest at -3.63%
DEBT-EQUITY RATIO (HY) Highest at -41.49 %

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 3.05%, its profits have fallen by -128.3%

Underperformed the market in the last 1 year

The stock has generated a return of 3.05% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

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 Software Products)

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

Is Nippon Ichi Software, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nippon Ichi Software, Inc.

3.05%

-0.77

20.19%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.73%

EBIT Growth (5y)

-190.20%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.54

Sales to Capital Employed (avg)

0.55

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

41.15%

ROE (avg)

11.44%

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

0.56

EV to EBIT

-0.54

EV to EBITDA

-0.87

EV to Capital Employed

0.04

EV to Sales

0.03

PEG Ratio

Dividend Yield

ROCE (Latest)

-7.65%

ROE (Latest)

-2.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

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

20What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -30.97% (YoY

CASH AND EQV(HY)

Highest at JPY 11,059.75 MM

OPERATING PROFIT(Q)

Highest at JPY 96.53 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.88 %

PRE-TAX PROFIT(Q)

Highest at JPY 206.42 MM

NET PROFIT(Q)

Highest at JPY 209.92 MM

-21What is not working for the Company

NET SALES(HY)

At JPY 1,741.12 MM has Grown at -35.12%

ROCE(HY)

Lowest at -3.63%

DEBT-EQUITY RATIO (HY)

Highest at -41.49 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.46 times

INTEREST(Q)

Highest at JPY 4.59 MM

Here's what is working for Nippon Ichi Software, Inc.

Pre-Tax Profit

At JPY 206.42 MM has Grown at 747.74%

over average net sales of the previous four periods of JPY -31.87 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 209.92 MM has Grown at 504.07%

over average net sales of the previous four periods of JPY -51.95 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Profit

Highest at JPY 96.53 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 9.88 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 206.42 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 209.92 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 11,059.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -30.97% (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

Depreciation

Highest at JPY 32.06 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Here's what is not working for Nippon Ichi Software, Inc.

Net Sales

At JPY 1,741.12 MM has Grown at -35.12%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest

Highest at JPY 4.59 MM

in the last five periods and Increased by 6.94% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -41.49 %

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

Inventory Turnover Ratio

Lowest at 2.46 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio