NTT DATA Group Corp. (9613) 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

BayCurrent Consulting, Inc.

SCSK Corp.

Visional, Inc.

transcosmos, Inc.

SOHGO SECURITY SERVICES CO., LTD.

TKC Corp.

NTT DATA Group Corp.

SECOM Co., Ltd.

Medley, Inc.

ITOCHU Techno-Solutions Corp.

AEON DELIGHT CO., LTD.

Why is NTT DATA Group Corp. ?

High Management Efficiency with a high ROCE of 9.89%

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 15.40% and Operating profit at 19.82%

Flat results in Jun 25

INTEREST(Q) At JPY 27,287 MM has Grown at 19.93%
NET SALES(Q) Lowest at JPY 1,104,369 MM
PRE-TAX PROFIT(Q) Lowest at JPY 36,681 MM

With ROCE of 7.99%, it has a attractive valuation with a 1.93 Enterprise value to Capital Employed

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 56.53%, its profits have fallen by -4.5%

Majority shareholders : Non Institution

Market Beating Performance

The stock has generated a return of 56.53% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 23.68%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to NTT DATA Group Corp. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is NTT DATA Group Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

NTT DATA Group Corp.

56.53%

230.31

36.83%

Japan Nikkei 225

27.37%

0.97

24.44%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.40%

EBIT Growth (5y)

19.82%

EBIT to Interest (avg)

12.81

Debt to EBITDA (avg)

2.05

Net Debt to Equity (avg)

1.22

Sales to Capital Employed (avg)

1.07

Tax Ratio

44.32%

Dividend Payout Ratio

24.61%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

9.89%

ROE (avg)

9.41%

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

3.06

EV to EBIT

24.15

EV to EBITDA

11.37

EV to Capital Employed

1.93

EV to Sales

1.69

PEG Ratio

Dividend Yield

ROCE (Latest)

7.99%

ROE (Latest)

7.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Sideways

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 493,837 MM

RAW MATERIAL COST(Y)

Fallen by -6.13% (YoY

-6What is not working for the Company

INTEREST(Q)

At JPY 27,287 MM has Grown at 19.93%

NET SALES(Q)

Lowest at JPY 1,104,369 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 36,681 MM

NET PROFIT(Q)

Lowest at JPY 21,085 MM

EPS(Q)

Lowest at JPY 15.04

Here's what is working for NTT DATA Group Corp.

Operating Cash Flow

Highest at JPY 493,837 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Raw Material Cost

Fallen by -6.13% (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 NTT DATA Group Corp.

Interest

At JPY 27,287 MM has Grown at 19.93%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 1,104,369 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

Lowest at JPY 36,681 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 21,085 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 15.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)