Saison Technology Co., Ltd. (9640) 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

Cresco Ltd.

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ITFOR, Inc.

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MarkLines Co., Ltd.

Alpha Systems, Inc.

Fixstars Corp.

Serverworks Co., Ltd.

Saison Technology Co., Ltd.

INES Corp.

Why is Saison Technology Co., Ltd. ?

Weak Long Term Fundamental Strength with a -11.72% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of -0.52% and Operating profit at -11.72% over the last 5 years

Negative results in Jun 26

PRE-TAX PROFIT(Q) At JPY 199.49 MM has Fallen at -49.97%
NET PROFIT(Q) At JPY 126.19 MM has Fallen at -53.54%
INVENTORY TURNOVER RATIO(HY) Lowest at 198.71 times

With ROE of 7.69%, it has a very attractive valuation with a 2.42 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 4.50%, its profits have fallen by -27.9%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 4.50% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 61.01%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Saison Technology 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 Saison Technology Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Saison Technology Co., Ltd.

3.76%

0.42

24.73%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.52%

EBIT Growth (5y)

-11.72%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.90

Sales to Capital Employed (avg)

1.70

Tax Ratio

31.89%

Dividend Payout Ratio

134.20%

Pledged Shares

Institutional Holding

ROCE (avg)

169.72%

ROE (avg)

11.61%

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

2.42

EV to EBIT

13.35

EV to EBITDA

9.14

EV to Capital Employed

16.59

EV to Sales

0.98

PEG Ratio

Dividend Yield

ROCE (Latest)

124.27%

ROE (Latest)

7.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.65% (YoY

-14What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 199.49 MM has Fallen at -49.97%

NET PROFIT(Q)

At JPY 126.19 MM has Fallen at -53.54%

INVENTORY TURNOVER RATIO(HY)

Lowest at 198.71 times

NET SALES(Q)

Lowest at JPY 5,048.21 MM

Here's what is working for Saison Technology Co., Ltd.

Raw Material Cost

Fallen by -4.65% (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 Saison Technology Co., Ltd.

Pre-Tax Profit

At JPY 199.49 MM has Fallen at -49.97%

over average net sales of the previous four periods of JPY 398.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 126.19 MM has Fallen at -53.54%

over average net sales of the previous four periods of JPY 271.59 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 5,048.21 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Sales

At JPY 5,048.21 MM has Fallen at -7.87%

over average net sales of the previous four periods of JPY 5,479.34 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Inventory Turnover Ratio

Lowest at 198.71 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio