PKSHA Technology, Inc. (3993) 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

CHANGE Holdings, Inc.

Cybozu, Inc.

Sansan, Inc.

WingArc1st Inc.

MIXI, Inc.

Appier Group, Inc.

Infomart Corp.

freee K.K.

PKSHA Technology, Inc.

GREE, Inc.

DeNA Co., Ltd.

Why is PKSHA Technology, Inc. ?

Poor Management Efficiency with a low ROE of 6.10%

The company has been able to generate a Return on Equity (avg) of 6.10% signifying low profitability per unit of shareholders funds

Flat results in Dec 25

INTEREST(HY) At JPY 511.35 MM has Grown at 268.28%
NET PROFIT(HY) At JPY 914.77 MM has Grown at -49.32%
OPERATING CASH FLOW(Y) Lowest at JPY 0 MM

With ROE of 8.31%, it has a attractive valuation with a 3.12 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 -9.28%, its profits have fallen by -9.2%

Below par performance in long term as well as near term

Along with generating -9.28% 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 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 PKSHA Technology, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

PKSHA Technology, Inc.

-9.28%

-0.44

51.62%

Japan Nikkei 225

38.94%

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)

26.93%

EBIT Growth (5y)

36.14%

EBIT to Interest (avg)

30.26

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.34

Sales to Capital Employed (avg)

0.46

Tax Ratio

35.78%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

10.25%

ROE (avg)

6.10%

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

3.12

EV to EBIT

28.62

EV to EBITDA

18.62

EV to Capital Employed

4.21

EV to Sales

5.04

PEG Ratio

Dividend Yield

ROCE (Latest)

14.70%

ROE (Latest)

8.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

15What is working for the Company

NET SALES(Q)

Highest at JPY 8,862.05 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 22.25 times

OPERATING PROFIT(Q)

Highest at JPY 2,274.22 MM

-17What is not working for the Company

INTEREST(HY)

At JPY 511.35 MM has Grown at 268.28%

NET PROFIT(HY)

At JPY 914.77 MM has Grown at -49.32%

OPERATING CASH FLOW(Y)

Lowest at JPY 0 MM

RAW MATERIAL COST(Y)

Grown by 8.29% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -22.41 %

Here's what is working for PKSHA Technology, Inc.

Net Sales

At JPY 8,862.05 MM has Grown at 62.82%

over average net sales of the previous four periods of JPY 5,442.85 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (JPY MM)

Net Sales

Highest at JPY 8,862.05 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 2,274.22 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Inventory Turnover Ratio

Highest at 22.25 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at JPY 654.73 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 PKSHA Technology, Inc.

Interest

At JPY 511.35 MM has Grown at 268.28%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 914.77 MM has Grown at -49.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Cash Flow

Lowest at JPY 0 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Debt-Equity Ratio

Highest at -22.41 %

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

Raw Material Cost

Grown by 8.29% (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