SAKURA Internet, Inc. (3778) 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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SAKURA Internet, Inc.

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Why is SAKURA Internet, Inc. ?

Poor Management Efficiency with a low ROE of 8.19%

The company has been able to generate a Return on Equity (avg) of 8.19% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 7.95

Poor long term growth as Net Sales has grown by an annual rate of 9.75% and Operating profit at -178.20% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 7.95
The company has been able to generate a Return on Equity (avg) of 8.19% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.75% and Operating profit at -178.20% over the last 5 years

The company has declared positive results in Jun'2026 after 4 consecutive negative quarters

INTEREST COVERAGE RATIO(Q) Highest at 2,311.59
NET SALES(Q) At JPY 11,134.6 MM has Grown at 48.62%
OPERATING PROFIT(Q) Highest at JPY 4,181.11 MM

With ROE of 0.78%, it has a fair valuation with a 3.96 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 8.69%, its profits have fallen by -92.1%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SAKURA Internet, Inc. should be less than 10%
Overall Portfolio exposure to Commercial Services & Supplies should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is SAKURA Internet, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

SAKURA Internet, Inc.

8.69%

-0.53

63.87%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.75%

EBIT Growth (5y)

-178.20%

EBIT to Interest (avg)

6.42

Debt to EBITDA (avg)

0.40

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

0.85

Tax Ratio

3.90%

Dividend Payout Ratio

92.62%

Pledged Shares

Institutional Holding

ROCE (avg)

10.52%

ROE (avg)

8.19%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

508

Industry P/E

Price to Book Value

3.96

EV to EBIT

-317.58

EV to EBITDA

17.48

EV to Capital Employed

3.28

EV to Sales

3.63

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.03%

ROE (Latest)

0.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

32What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 2,311.59

NET SALES(Q)

At JPY 11,134.6 MM has Grown at 48.62%

OPERATING PROFIT(Q)

Highest at JPY 4,181.11 MM

OPERATING PROFIT MARGIN(Q)

Highest at 37.55 %

PRE-TAX PROFIT(Q)

Highest at JPY 1,257.61 MM

NET PROFIT(Q)

Highest at JPY 855.93 MM

RAW MATERIAL COST(Y)

Fallen by -51.61% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 56.92 times

EPS(Q)

Highest at JPY 21.38

-12What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 66 %

INTEREST(Q)

Highest at JPY 180.88 MM

Here's what is working for SAKURA Internet, Inc.

Interest Coverage Ratio

Highest at 2,311.59 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At JPY 1,257.61 MM has Grown at 386.93%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 855.93 MM has Grown at 363.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 11,134.6 MM has Grown at 48.62%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 4,181.11 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 37.55 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 1,257.61 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 855.93 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

EPS

Highest at JPY 21.38

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 56.92 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -51.61% (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 2,950.43 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 SAKURA Internet, Inc.

Interest

At JPY 180.88 MM has Grown at 11.86%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 180.88 MM

in the last five periods and Increased by 11.86% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 66 %

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