Rakumo, Inc. (4060) 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

HPC Systems, Inc.

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CREO Co., Ltd.

Mobile Factory, Inc.

Rakumo, Inc.

Beaglee Inc.

Hybrid Technologies Co., Ltd.

Gala, Inc.

Prime Strategy Co., Ltd.

TECHNOLOGIES, Inc.

Why is Rakumo, Inc. ?

High Management Efficiency with a high ROE of 18.18%

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

Healthy long term growth as Net Sales has grown by an annual rate of 20.54% and Operating profit at 32.12%

Negative results in Jun 25

INTEREST(9M) At JPY 1.18 MM has Grown at 5.83%
INVENTORY TURNOVER RATIO(HY) Lowest at 584.23%

With ROE of 16.06%, it has a attractive valuation with a 2.93 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 15.78%, its profits have risen by 31.1% ; the PEG ratio of the company is 0.6

Underperformed the market in the last 1 year

The stock has generated a return of 15.78% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Rakumo, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is Rakumo, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Rakumo, Inc.

14.65%

-0.31

38.90%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.54%

EBIT Growth (5y)

32.12%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.10

Sales to Capital Employed (avg)

0.71

Tax Ratio

32.67%

Dividend Payout Ratio

13.71%

Pledged Shares

Institutional Holding

ROCE (avg)

1,391.55%

ROE (avg)

18.18%

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

2.93

EV to EBIT

7.56

EV to EBITDA

6.09

EV to Capital Employed

-19.13

EV to Sales

2.04

PEG Ratio

0.60

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

16.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

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

6What is working for the Company

NET SALES(Q)

Highest at JPY 407.4 MM

RAW MATERIAL COST(Y)

Fallen by -8.26% (YoY

NET PROFIT(9M)

Higher at JPY 233.48 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 37.5%

PRE-TAX PROFIT(Q)

Highest at JPY 116.12 MM

-7What is not working for the Company

INTEREST(9M)

At JPY 1.18 MM has Grown at 5.83%

INVENTORY TURNOVER RATIO(HY)

Lowest at 584.23%

Here's what is working for Rakumo, Inc.

Net Sales

Highest at JPY 407.4 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 116.12 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Debtors Turnover Ratio

Highest at 37.5%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Profit

Higher at JPY 233.48 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Raw Material Cost

Fallen by -8.26% (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

Here's what is not working for Rakumo, Inc.

Interest

At JPY 0.77 MM has Grown at 1,254.39%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 584.23%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio