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)

Dawn Corp.

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BlueMeme, Inc.

Sinops, Inc.

Ficha, Inc.

Nulab, Inc. (Japan)

SMN Corp.

Nippon Ichi Software, Inc.

ImageONE Co., Ltd.

All About, Inc.

Why is Nippon Ichi Software, Inc. ?

Weak Long Term Fundamental Strength with a -181.28% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of -3.13% and Operating profit at -181.28% over the last 5 years

Flat results in Jun 26

PRE-TAX PROFIT(Q) At JPY -69.46 MM has Fallen at -406.55%
NET PROFIT(Q) At JPY -61.12 MM has Fallen at -560.93%
RAW MATERIAL COST(Y) Grown by 22.24% (YoY)

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 19.44%, its profits have fallen by -251.2%

Underperformed the market in the last 1 year

The stock has generated a return of 19.44% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

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.

23.37%

0.22

26.47%

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)

-3.13%

EBIT Growth (5y)

-181.28%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.45

Sales to Capital Employed (avg)

0.50

Tax Ratio

6.53%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

20.78%

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

0.52

EV to EBIT

-2.43

EV to EBITDA

-3.57

EV to Capital Employed

0.19

EV to Sales

0.23

PEG Ratio

Dividend Yield

ROCE (Latest)

-7.67%

ROE (Latest)

-1.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

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

11What is working for the Company

NET PROFIT(HY)

Higher at JPY -94.4 MM

CASH AND EQV(HY)

Highest at JPY 12,717.12 MM

DEBT-EQUITY RATIO (HY)

Lowest at -56.18 %

DEBTORS TURNOVER RATIO(HY)

Highest at 19.14 times

-19What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY -69.46 MM has Fallen at -406.55%

NET PROFIT(Q)

At JPY -61.12 MM has Fallen at -560.93%

RAW MATERIAL COST(Y)

Grown by 22.24% (YoY

NET SALES(Q)

At JPY 847.72 MM has Fallen at -5.98%

INTEREST(Q)

Highest at JPY 5.13 MM

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

Cash and Eqv

Highest at JPY 12,717.12 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -56.18 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 19.14 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Pre-Tax Profit

At JPY -69.46 MM has Fallen at -406.55%

over average net sales of the previous four periods of JPY -13.71 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -61.12 MM has Fallen at -560.93%

over average net sales of the previous four periods of JPY -9.25 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 5.13 MM has Grown at 11.39%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 847.72 MM has Fallen at -5.98%

over average net sales of the previous four periods of JPY 901.66 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 5.13 MM

in the last five periods and Increased by 11.39% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 22.24% (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