Why is SCSK Corp. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 14.29%
- Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 64.99
2
Positive results in Jun 25
- OPERATING CASH FLOW(Y) Highest at JPY 84,980 MM
- ROCE(HY) Highest at 16.6%
- NET SALES(Q) At JPY 177,474 MM has Grown at 44.83%
3
Market Beating performance in long term as well as near term
- Along with generating 82.09% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
How much should you buy?
- Overall Portfolio exposure to SCSK Corp. should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is SCSK Corp. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
SCSK Corp.
75.12%
2.42
34.86%
Japan Nikkei 225
27.37%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
9.02%
EBIT Growth (5y)
9.93%
EBIT to Interest (avg)
64.99
Debt to EBITDA (avg)
0.35
Net Debt to Equity (avg)
0.55
Sales to Capital Employed (avg)
1.30
Tax Ratio
29.71%
Dividend Payout Ratio
49.27%
Pledged Shares
0
Institutional Holding
1.27%
ROCE (avg)
24.92%
ROE (avg)
14.29%
Valuation Key Factors 
Factor
Value
P/E Ratio
29
Industry P/E
Price to Book Value
4.65
EV to EBIT
22.33
EV to EBITDA
16.35
EV to Capital Employed
3.35
EV to Sales
2.55
PEG Ratio
2.01
Dividend Yield
0.01%
ROCE (Latest)
15.01%
ROE (Latest)
15.95%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Movement
16What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 84,980 MM
ROCE(HY)
Highest at 16.6%
NET SALES(Q)
At JPY 177,474 MM has Grown at 44.83%
RAW MATERIAL COST(Y)
Fallen by -7.81% (YoY
-13What is not working for the Company
INTEREST(HY)
At JPY 3,059 MM has Grown at 1,164.05%
DEBT-EQUITY RATIO
(HY)
Highest at 91.24 %
Here's what is working for SCSK Corp.
Operating Cash Flow
Highest at JPY 84,980 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Net Sales
At JPY 177,474 MM has Grown at 44.83%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Raw Material Cost
Fallen by -7.81% (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 8,359 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for SCSK Corp.
Interest
At JPY 3,059 MM has Grown at 1,164.05%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at 91.24 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






