Ryomo Systems Co., Ltd. (9691) 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

Ryomo Systems Co., Ltd.

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Why is Ryomo Systems Co., Ltd. ?

High Management Efficiency with a high ROE of 10.57%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 56.40

The company has declared positive results in Mar'2025 after 4 consecutive negative quarters

NET SALES(HY) At JPY 13,597.77 MM has Grown at 47.4%
OPERATING CASH FLOW(Y) Highest at JPY 2,465.71 MM
ROCE(HY) Highest at 13.17%

With ROE of 11.60%, it has a expensive valuation with a 0.80 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 79.76%, its profits have risen by 8.6% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 0

Market Beating Performance

The stock has generated a return of 79.76% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Ryomo Systems 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 Ryomo Systems Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Ryomo Systems Co., Ltd.

80.77%

2.92

28.86%

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)

7.25%

EBIT Growth (5y)

12.36%

EBIT to Interest (avg)

56.36

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

1.24

Tax Ratio

29.43%

Dividend Payout Ratio

9.36%

Pledged Shares

Institutional Holding

ROCE (avg)

17.46%

ROE (avg)

10.57%

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

0.80

EV to EBIT

4.27

EV to EBITDA

2.71

EV to Capital Employed

0.78

EV to Sales

0.43

PEG Ratio

0.80

Dividend Yield

0.02%

ROCE (Latest)

18.27%

ROE (Latest)

11.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

No Trend

OBV

Mildly Bullish

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

19What is working for the Company

NET SALES(HY)

At JPY 13,597.77 MM has Grown at 47.4%

OPERATING CASH FLOW(Y)

Highest at JPY 2,465.71 MM

ROCE(HY)

Highest at 13.17%

PRE-TAX PROFIT(Q)

At JPY 352.56 MM has Grown at 131.39%

NET PROFIT(Q)

At JPY 218.11 MM has Grown at 201.21%

RAW MATERIAL COST(Y)

Fallen by -9.43% (YoY

CASH AND EQV(HY)

Highest at JPY 10,159.86 MM

-9What is not working for the Company

INTEREST(9M)

At JPY 60.54 MM has Grown at 43.37%

Here's what is working for Ryomo Systems Co., Ltd.

Net Sales

At JPY 13,597.77 MM has Grown at 47.4%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 352.56 MM has Grown at 131.39%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 218.11 MM has Grown at 201.21%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Cash Flow

Highest at JPY 2,465.71 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Cash and Eqv

Highest at JPY 10,159.86 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -9.43% (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 Ryomo Systems Co., Ltd.

Interest

At JPY 39.79 MM has Grown at 18.77%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)