Proto Corp. (4298) 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

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NEXON Co., Ltd.

Proto Corp.

Why is Proto Corp. ?

Strong Long Term Fundamental Strength with a 10.79% CAGR growth in Operating Profits

Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 33.24% signifying high profitability per unit of total capital (equity and debt)

Negative results in Mar 25

ROCE(HY) Lowest at 10.12%
INTEREST COVERAGE RATIO(Q) Lowest at 21,930
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%

With ROE of 11.40%, it has a expensive valuation with a 1.77 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 52.22%, its profits have risen by 3.2% ; the PEG ratio of the company is 4.8

Market Beating Performance

The stock has generated a return of 52.22% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 2.06%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Proto Corp. should be less than 10%
Overall Portfolio exposure to Internet Software/Services should be less than 30%

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

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

Is Proto Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Proto Corp.

52.22%

1.30

41.87%

Japan Nikkei 225

28.54%

0.07

31.09%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.45%

EBIT Growth (5y)

10.79%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.49

Sales to Capital Employed (avg)

2.19

Tax Ratio

34.75%

Dividend Payout Ratio

20.51%

Pledged Shares

Institutional Holding

0.13%

ROCE (avg)

33.24%

ROE (avg)

12.37%

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

1.77

EV to EBIT

7.40

EV to EBITDA

6.26

EV to Capital Employed

2.50

EV to Sales

0.52

PEG Ratio

4.81

Dividend Yield

ROCE (Latest)

33.79%

ROE (Latest)

11.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly 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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.97% (YoY

CASH AND EQV(HY)

Highest at JPY 57,597 MM

DEBT-EQUITY RATIO (HY)

Lowest at -48.89 %

-17What is not working for the Company

ROCE(HY)

Lowest at 10.12%

INTEREST COVERAGE RATIO(Q)

Lowest at 21,930

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DIVIDEND PER SHARE(HY)

Lowest at JPY 18.58

INTEREST(Q)

Highest at JPY 10 MM

Here's what is working for Proto Corp.

Cash and Eqv

Highest at JPY 57,597 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -48.89 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -0.97% (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 412 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 Proto Corp.

Interest

At JPY 10 MM has Grown at 11.11%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 21,930

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 10 MM

in the last five periods and Increased by 11.11% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Dividend per share

Lowest at JPY 18.58

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (JPY)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Non Operating Income

Highest at JPY 0.15 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income