Quantum Solutions Co., Ltd. (2338) 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

User Local, Inc.

Digital Information Technologies Corp.

ITFOR, Inc.

Japan System Techniques Co., Ltd.

GMO GlobalSign Holdings KK

JASTEC Co., Ltd.

Serverworks Co., Ltd.

Access Co., Ltd.

I-NET Corp.

Saison Technology Co., Ltd.

Quantum Solutions Co., Ltd.

Why is Quantum Solutions Co., Ltd. ?

Poor Management Efficiency with a low ROE of 0%

The company has reported losses. Due to this company has reported negative ROE

Poor long term growth as Net Sales has grown by an annual rate of 8.85% and Operating profit at -17.40% over the last 5 years

NET SALES(HY) At JPY 127.71 MM has Grown at -75.84%
RAW MATERIAL COST(Y) Grown by 33.7% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 212.81 %

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -69.49%, its profits have risen by 40.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -69.49% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

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 Computers - Software & Consulting)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Quantum Solutions Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Quantum Solutions Co., Ltd.

-69.49%

-0.69

95.00%

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)

8.85%

EBIT Growth (5y)

-17.40%

EBIT to Interest (avg)

-385.49

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.57

Sales to Capital Employed (avg)

2.87

Tax Ratio

0.46%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

87.99

EV to EBIT

-43.55

EV to EBITDA

-43.60

EV to Capital Employed

204.81

EV to Sales

29.74

PEG Ratio

Dividend Yield

ROCE (Latest)

-470.24%

ROE (Latest)

-196.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

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

5What is working for the Company

NET PROFIT(HY)

Higher at JPY -280.14 MM

CASH AND EQV(HY)

Highest at JPY 3,241.8 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.39 times

-26What is not working for the Company

NET SALES(HY)

At JPY 127.71 MM has Grown at -75.84%

RAW MATERIAL COST(Y)

Grown by 33.7% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 212.81 %

INTEREST(Q)

Highest at JPY 11.2 MM

OPERATING PROFIT(Q)

Lowest at JPY -200.43 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -298.46 %

PRE-TAX PROFIT(Q)

Lowest at JPY -157.85 MM

NET PROFIT(Q)

Lowest at JPY -158.25 MM

EPS(Q)

Lowest at JPY -20.15

Here's what is working for Quantum Solutions Co., Ltd.

Cash and Eqv

Highest at JPY 3,241.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.39 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Quantum Solutions Co., Ltd.

Net Sales

At JPY 127.71 MM has Grown at -75.84%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest

At JPY 11.2 MM has Grown at 200.27%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 11.2 MM

in the last five periods and Increased by 200.27% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY -200.43 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -298.46 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -157.85 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 -158.25 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -20.15

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at 212.81 %

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 33.7% (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