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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fujitsu Ltd.

Nomura Research Institute Ltd.

OTSUKA CORP.

OBIC Co. Ltd.

TIS, Inc. (Japan)

NEC Networks & System Integration Corp.

GMO Internet Group, Inc.

SHIFT, Inc.

NEC Corp.

NS Solutions Corp.

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 Jun 25

INTEREST(HY) At JPY 390 MM has Grown at 44.98%
OPERATING CASH FLOW(Y) Lowest at JPY 545 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 7.43%

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 2.09%, its profits have risen by 11.6%

Underperformed the market in the last 1 year

The stock has generated a return of 2.09% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

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, High Return

Absolute

Risk Adjusted

Volatility

NS Solutions Corp.

2.09%

2.17

30.03%

Japan Nikkei 225

28.54%

1.11

25.75%

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)

1.31

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

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.28% (YoY

CASH AND EQV(HY)

Highest at JPY 354,787 MM

-15What is not working for the Company

INTEREST(HY)

At JPY 390 MM has Grown at 44.98%

OPERATING CASH FLOW(Y)

Lowest at JPY 545 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.43%

OPERATING PROFIT(Q)

Lowest at JPY 11,222 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.57 %

NET PROFIT(Q)

Lowest at JPY 5,111 MM

EPS(Q)

Lowest at JPY 27.93

Here's what is working for NS Solutions Corp.

Cash and Eqv

Highest at JPY 354,787 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -4.28% (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

Here's what is not working for NS Solutions Corp.

Interest

At JPY 390 MM has Grown at 44.98%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Cash Flow

Lowest at JPY 545 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)

Operating Profit

Lowest at JPY 11,222 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 13.57 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at JPY 5,111 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 27.93

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 7.43%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio