Segue Group Co., Ltd. (3968) 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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Why is Segue Group Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 17.68%

Healthy long term growth as Net Sales has grown by an annual rate of 14.43% and Operating profit at 0.65%
Company has very low debt and has enough cash to service the debt requirements

With a growth in Net Sales of 27.37%, the company declared Very Positive results in Dec 25

The company has declared positive results in Jan 70 after 4 consecutive negative quarters
ROCE(HY) Highest at 32.94%
NET SALES(Q) At JPY 7,215.39 MM has Grown at 27.37%
NET PROFIT(Q) At JPY 320.06 MM has Grown at 114.6%

With ROE of 9.08%, it has a very attractive valuation with a 4.90 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 -0.20%, its profits have fallen by -53.9%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Segue Group 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 Segue Group Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Segue Group Co., Ltd.

-0.2%

-0.39

44.76%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.43%

EBIT Growth (5y)

0.65%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.59

Sales to Capital Employed (avg)

3.44

Tax Ratio

78.03%

Dividend Payout Ratio

69.94%

Pledged Shares

Institutional Holding

ROCE (avg)

57.49%

ROE (avg)

17.68%

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

4.90

EV to EBIT

28.62

EV to EBITDA

16.89

EV to Capital Employed

10.44

EV to Sales

0.80

PEG Ratio

Dividend Yield

ROCE (Latest)

36.47%

ROE (Latest)

9.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

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

27What is working for the Company

ROCE(HY)

Highest at 32.94%

NET SALES(Q)

At JPY 7,215.39 MM has Grown at 27.37%

NET PROFIT(Q)

At JPY 320.06 MM has Grown at 114.6%

INVENTORY TURNOVER RATIO(HY)

Highest at 6.84 times

DIVIDEND PER SHARE(HY)

Highest at JPY 5.42

-16What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 7.31% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 34.43 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.42 times

INTEREST(Q)

Highest at JPY 16.71 MM

Here's what is working for Segue Group Co., Ltd.

Net Sales

At JPY 7,215.39 MM has Grown at 27.37%

over average net sales of the previous four periods of JPY 5,664.82 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Profit

At JPY 320.06 MM has Grown at 114.6%

over average net sales of the previous four periods of JPY 149.14 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 6.84 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 5.42

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Depreciation

Highest at JPY 125.28 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 Segue Group Co., Ltd.

Interest

At JPY 16.71 MM has Grown at 51.62%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 16.71 MM

in the last five periods and Increased by 51.62% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 34.43 %

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

Debtors Turnover Ratio

Lowest at 5.42 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 7.31% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales