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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Rakumo, Inc.

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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%

With a growth in Net Profit of 59.95%, the company declared Very Positive results in Dec 25

NET SALES(Q) Highest at JPY 521.03 MM
DIVIDEND PAYOUT RATIO(Y) Highest at 67.5%
RAW MATERIAL COST(Y) Fallen by -5.06% (YoY)

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 25.70%, 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 25.70% 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 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.

25.7%

-0.26

40.11%

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)

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)

0.67

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

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

15What is working for the Company

NET SALES(Q)

Highest at JPY 521.03 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 67.5%

RAW MATERIAL COST(Y)

Fallen by -5.06% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1,063.76 times

DIVIDEND PER SHARE(HY)

Highest at JPY 21.49

OPERATING PROFIT(Q)

Highest at JPY 167.04 MM

-10What is not working for the Company

INTEREST(HY)

At JPY 5.01 MM has Grown at 214.1%

DEBT-EQUITY RATIO (HY)

Highest at -31.93 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 21.49 times

Here's what is working for Rakumo, Inc.

Net Sales

Highest at JPY 521.03 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

At JPY 521.03 MM has Grown at 22.8%

over average net sales of the previous four periods of JPY 424.31 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 167.04 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Inventory Turnover Ratio

Highest at 1,063.76 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 21.49

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 67.5%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -5.06% (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 57.84 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 Rakumo, Inc.

Interest

At JPY 5.01 MM has Grown at 214.1%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -31.93 %

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

Debtors Turnover Ratio

Lowest at 21.49 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio