Quest Co., Ltd. (2332) 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

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Why is Quest Co., Ltd. ?

High Management Efficiency with a high ROE of 11.26%

Company has very low debt and has enough cash to service the debt requirements

Flat results in Dec 25

INTEREST(HY) At JPY 0.81 MM has Grown at 125.56%
RAW MATERIAL COST(Y) Grown by 9.59% (YoY)
DEBT-EQUITY RATIO (HY) Highest at -23.96 %

With ROE of 10.58%, it has a very attractive valuation with a 1.06 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 14.53%, its profits have risen by 10.3% ; the PEG ratio of the company is 1

Underperformed the market in the last 1 year

The stock has generated a return of 14.53% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Quest Co., Ltd. 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 Quest Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Quest Co., Ltd.

14.53%

0.47

32.91%

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)

7.69%

EBIT Growth (5y)

7.46%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.49

Sales to Capital Employed (avg)

2.17

Tax Ratio

30.98%

Dividend Payout Ratio

40.49%

Pledged Shares

Institutional Holding

ROCE (avg)

30.28%

ROE (avg)

11.26%

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

1.06

EV to EBIT

3.95

EV to EBITDA

3.43

EV to Capital Employed

1.12

EV to Sales

0.28

PEG Ratio

0.98

Dividend Yield

ROCE (Latest)

28.33%

ROE (Latest)

10.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

11What is working for the Company

NET SALES(Q)

Highest at JPY 4,454.47 MM

INTEREST COVERAGE RATIO(Q)

Highest at 209,520.65

OPERATING PROFIT(Q)

Highest at JPY 324.76 MM

PRE-TAX PROFIT(Q)

Highest at JPY 299.6 MM

EPS(Q)

Highest at JPY 41.05

-14What is not working for the Company

INTEREST(HY)

At JPY 0.81 MM has Grown at 125.56%

RAW MATERIAL COST(Y)

Grown by 9.59% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -23.96 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 605.32 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.41 times

Here's what is working for Quest Co., Ltd.

Net Sales

Highest at JPY 4,454.47 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Interest Coverage Ratio

Highest at 209,520.65

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at JPY 324.76 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 299.6 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

EPS

Highest at JPY 41.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Depreciation

Highest at JPY 52 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 Quest Co., Ltd.

Interest

At JPY 0.81 MM has Grown at 125.56%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -23.96 %

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

Inventory Turnover Ratio

Lowest at 605.32 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.41 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 9.59% (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

Non Operating Income

Highest at JPY 0.09 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income