SERAKU Co., Ltd. (6199) 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

SERAKU Co., Ltd.

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System Information Co., Ltd.

Why is SERAKU Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 21.61%

Healthy long term growth as Net Sales has grown by an annual rate of 11.50% and Operating profit at 11.12%
Company has very low debt and has enough cash to service the debt requirements

Positive results in May 26

INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
RAW MATERIAL COST(Y) Fallen by -8.96% (YoY)
CASH AND EQV(HY) Highest at JPY 16,579.03 MM

With ROE of 15.94%, it has a attractive valuation with a 1.62 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 -18.60%, its profits have fallen by -12.8%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to SERAKU 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 SERAKU Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

SERAKU Co., Ltd.

-18.68%

0.57

30.76%

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)

11.50%

EBIT Growth (5y)

11.12%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.88

Sales to Capital Employed (avg)

2.77

Tax Ratio

37.90%

Dividend Payout Ratio

10.38%

Pledged Shares

Institutional Holding

ROCE (avg)

442.62%

ROE (avg)

21.61%

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

1.62

EV to EBIT

3.15

EV to EBITDA

3.05

EV to Capital Employed

4.50

EV to Sales

0.30

PEG Ratio

Dividend Yield

ROCE (Latest)

142.70%

ROE (Latest)

15.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

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

13What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -8.96% (YoY

CASH AND EQV(HY)

Highest at JPY 16,579.03 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 296.77 times

DEBTORS TURNOVER RATIO(HY)

Highest at 8.97 times

NET SALES(Q)

Highest at JPY 6,420.97 MM

OPERATING PROFIT(Q)

Highest at JPY 840.96 MM

OPERATING PROFIT MARGIN(Q)

Highest at 13.1 %

PRE-TAX PROFIT(Q)

Highest at JPY 852.47 MM

NET PROFIT(Q)

Highest at JPY 535.56 MM

EPS(Q)

Highest at JPY 40.61

-2What is not working for the Company

ROCE(HY)

Lowest at 17.71%

Here's what is working for SERAKU Co., Ltd.

Net Sales

Highest at JPY 6,420.97 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 840.96 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 13.1 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 852.47 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 535.56 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 40.61

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 16,579.03 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 296.77 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 8.97 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -8.96% (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 23.43 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)