NS Solutions Corp. (2327) 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

OTSUKA CORP.

NEC Networks & System Integration Corp.

OBIC Co. Ltd.

Fujitsu Ltd.

TIS, Inc. (Japan)

Nomura Research Institute Ltd.

NEC Corp.

NS Solutions Corp.

GMO Internet Group, Inc.

SHIFT, Inc.

Fuji Soft, Inc.

Why is NS Solutions Corp. ?

High Management Efficiency with a high ROE of 10.74%

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

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at JPY -7,803 MM
INTEREST(Q) At JPY 49 MM has Grown at 1,125%
DEBT-EQUITY RATIO (HY) Highest at -25.43 %

With ROE of 10.75%, it has a very attractive valuation with a 2.77 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 -10.04%, its profits have risen by 11.6%

Below par performance in long term as well as near term

Along with generating -10.04% 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 hold?

Overall Portfolio exposure to NS Solutions Corp. 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 NS Solutions Corp. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

NS Solutions Corp.

-10.04%

1.35

32.13%

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)

4.24%

EBIT Growth (5y)

7.44%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.72

Sales to Capital Employed (avg)

1.30

Tax Ratio

28.13%

Dividend Payout Ratio

50.06%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

32.50%

ROE (avg)

10.74%

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

2.77

EV to EBIT

13.22

EV to EBITDA

10.18

EV to Capital Employed

7.23

EV to Sales

1.59

PEG Ratio

Dividend Yield

ROCE (Latest)

54.69%

ROE (Latest)

10.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Bullish

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

8What is working for the Company

NET SALES(HY)

At JPY 192,711 MM has Grown at 17.89%

RAW MATERIAL COST(Y)

Fallen by -11.44% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 9.02 times

OPERATING PROFIT(Q)

Highest at JPY 16,435 MM

PRE-TAX PROFIT(Q)

Highest at JPY 12,970 MM

NET PROFIT(Q)

Highest at JPY 9,111 MM

EPS(Q)

Highest at JPY 49.8

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY -7,803 MM

INTEREST(Q)

At JPY 49 MM has Grown at 1,125%

DEBT-EQUITY RATIO (HY)

Highest at -25.43 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.38 times

Here's what is working for NS Solutions Corp.

Net Sales

At JPY 192,711 MM has Grown at 17.89%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 16,435 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 12,970 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 9,111 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 49.8

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 9.02 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -11.44% (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 3,703 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 NS Solutions Corp.

Operating Cash Flow

Lowest at JPY -7,803 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Interest

At JPY 49 MM has Grown at 1,125%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -25.43 %

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

Debtors Turnover Ratio

Lowest at 4.38 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio