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

extreme Co., Ltd.

Quest Co., Ltd.

Ridge-i, Inc.

Valtes Holdings Co., Ltd.

IC Co., Ltd.

Goodpatch, Inc.

Ricksoft Co., Ltd.

Globalway, Inc.

CAICA DIGITAL, Inc.

monoAI technology Co., Ltd.

Estore Corp.

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

Positive results in Mar 26

NET SALES(Q) Highest at JPY 4,568.04 MM
DEBTORS TURNOVER RATIO(HY) Highest at 4.76 times
OPERATING PROFIT(Q) Highest at JPY 384.97 MM

With ROE of 10.70%, it has a very attractive valuation with a 1.24 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 18.96%, its profits have risen by 11.5% ; the PEG ratio of the company is 1

Real-Time Research Report

Verdict Report

How much should you buy?

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Quest Co., Ltd.

20.83%

0.59

43.98%

Japan Nikkei 225

81.96%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.45%

EBIT Growth (5y)

4.12%

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

1.24

EV to EBIT

6.60

EV to EBITDA

5.57

EV to Capital Employed

1.33

EV to Sales

0.40

PEG Ratio

1.01

Dividend Yield

ROCE (Latest)

20.22%

ROE (Latest)

10.70%

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

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

12What is working for the Company

NET SALES(Q)

Highest at JPY 4,568.04 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.76 times

OPERATING PROFIT(Q)

Highest at JPY 384.97 MM

OPERATING PROFIT MARGIN(Q)

Highest at 8.43 %

PRE-TAX PROFIT(Q)

Highest at JPY 319.29 MM

NET PROFIT(Q)

Highest at JPY 251.62 MM

EPS(Q)

Highest at JPY 49.08

-12What is not working for the Company

INTEREST(HY)

At JPY 0.52 MM has Grown at 52.34%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 118.18%

RAW MATERIAL COST(Y)

Grown by 5.08% (YoY

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

Net Sales

Highest at JPY 4,568.04 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 384.97 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 8.43 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 319.29 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 251.62 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 49.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Highest at 4.76 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 52.93 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 0.52 MM has Grown at 52.34%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Dividend Payout Ratio

Lowest at 118.18%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 5.08% (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