Runsystem Co., Ltd. (3326) 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

Tokyotokeiba Co., Ltd.

Runsystem Co., Ltd.

Why is Runsystem Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.71%

Poor long term growth as Net Sales has grown by an annual rate of -7.71% and Operating profit at -7.17% over the last 5 years
The company is Net-Debt Free

With a fall in PBT of -76.79%, the company declared Very Negative results in Jun 26

The company has declared negative results for the last 9 consecutive quarters
NET SALES(HY) At JPY 2,361.15 MM has Grown at -19.15%
PRE-TAX PROFIT(Q) At JPY 6.46 MM has Fallen at -72.75%
ROCE(HY) Lowest at 19.84%

With ROE of 17.34%, it has a very expensive valuation with a 8.13 Price to Book Value

Over the past year, while the stock has generated a return of 3.88%, its profits have fallen by -87.8%

Underperformed the market in the last 1 year

The stock has generated a return of 3.88% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Runsystem Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Runsystem Co., Ltd.

7.33%

1.98

29.75%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.71%

EBIT Growth (5y)

-7.17%

EBIT to Interest (avg)

-6.17

Debt to EBITDA (avg)

4.95

Net Debt to Equity (avg)

7.71

Sales to Capital Employed (avg)

2.20

Tax Ratio

8.65%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.28%

ROE (avg)

51.25%

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

8.13

EV to EBIT

30.92

EV to EBITDA

11.83

EV to Capital Employed

2.18

EV to Sales

0.81

PEG Ratio

Dividend Yield

ROCE (Latest)

7.05%

ROE (Latest)

17.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -45.29% (YoY

-40What is not working for the Company

NET SALES(HY)

At JPY 2,361.15 MM has Grown at -19.15%

PRE-TAX PROFIT(Q)

At JPY 6.46 MM has Fallen at -72.75%

ROCE(HY)

Lowest at 19.84%

INTEREST COVERAGE RATIO(Q)

Lowest at 567.41

INVENTORY TURNOVER RATIO(HY)

Lowest at 19.31 times

INTEREST(Q)

Highest at JPY 15.84 MM

OPERATING PROFIT(Q)

Lowest at JPY 89.85 MM

NET PROFIT(Q)

Lowest at JPY 4.43 MM

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

Raw Material Cost

Fallen by -45.29% (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 70.13 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 Runsystem Co., Ltd.

Net Sales

At JPY 2,361.15 MM has Grown at -19.15%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 6.46 MM has Fallen at -72.75%

over average net sales of the previous four periods of JPY 23.72 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 4.43 MM has Fallen at -83.98%

over average net sales of the previous four periods of JPY 27.67 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 15.84 MM has Grown at 33.07%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 567.41

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 15.84 MM

in the last five periods and Increased by 33.07% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 89.85 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Net Profit

Lowest at JPY 4.43 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 19.31 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio