RAKUS Co., Ltd. (3923) 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

RAKUS Co., Ltd.

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Sega Sammy Holdings, Inc.

Why is RAKUS Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 26.36%

Healthy long term growth as Net Sales has grown by an annual rate of 33.33%
Company has very low debt and has enough cash to service the debt requirements

With a growth in Operating Profit of 111.05%, the company declared Very Positive results in Jun 25

The company has declared positive results for the last 11 consecutive quarters
ROCE(HY) Highest at 51.73%
DEBT-EQUITY RATIO (HY) Lowest at -47.4 %
NET SALES(Q) Highest at JPY 14,081 MM

With ROE of 36.42%, it has a attractive valuation with a 18.81 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 5.16%, its profits have risen by 91.4% ; the PEG ratio of the company is 0.6

Real-Time Research Report

Verdict Report

How much should you buy?

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

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

RAKUS Co., Ltd.

5.16%

-0.66

61.03%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

33.33%

EBIT Growth (5y)

54.06%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.51

Sales to Capital Employed (avg)

2.57

Tax Ratio

21.65%

Dividend Payout Ratio

10.19%

Pledged Shares

Institutional Holding

ROCE (avg)

94.79%

ROE (avg)

26.36%

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

18.81

EV to EBIT

39.46

EV to EBITDA

35.52

EV to Capital Employed

37.15

EV to Sales

8.22

PEG Ratio

0.56

Dividend Yield

ROCE (Latest)

94.16%

ROE (Latest)

36.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

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

24What is working for the Company

ROCE(HY)

Highest at 51.73%

DEBT-EQUITY RATIO (HY)

Lowest at -47.4 %

NET SALES(Q)

Highest at JPY 14,081 MM

RAW MATERIAL COST(Y)

Fallen by -1.73% (YoY

CASH AND EQV(HY)

Highest at JPY 21,628 MM

OPERATING PROFIT(Q)

Highest at JPY 3,959 MM

OPERATING PROFIT MARGIN(Q)

Highest at 28.12 %

PRE-TAX PROFIT(Q)

Highest at JPY 5,160 MM

NET PROFIT(Q)

Highest at JPY 3,537 MM

EPS(Q)

Highest at JPY 19.57

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Net Sales

Highest at JPY 14,081 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

At JPY 5,160 MM has Grown at 120.7%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Debt-Equity Ratio

Lowest at -47.4 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

At JPY 14,081 MM has Grown at 25.51%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 3,959 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 28.12 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 5,160 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 3,537 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 3,537 MM has Grown at 70.79%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 19.57

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 21,628 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.73% (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