Serverworks Co., Ltd. (4434) 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.

Global Security Experts, Inc.

Business Engineering Corp.

NSW, Inc. (Japan)

oRo Co., Ltd.

MarkLines Co., Ltd.

Baudroie, Inc.

Alpha Systems, Inc.

Fixstars Corp.

Serverworks Co., Ltd.

INES Corp.

Why is Serverworks Co., Ltd. ?

Poor Management Efficiency with a low ROE of 5.57%

The company has been able to generate a Return on Equity (avg) of 5.57% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 5.57%

The company has been able to generate a Return on Equity (avg) of 5.57% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 5.57%

Flat results in May 26

NET PROFIT(HY) At JPY 224.79 MM has Grown at -36.1%
ROCE(HY) Lowest at -3.64%
INTEREST(Q) Highest at JPY 1.98 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 8.15%, its profits have fallen by -71.1%

Underperformed the market in the last 1 year

The stock has generated a return of 8.15% 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 Serverworks 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 Serverworks Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Serverworks Co., Ltd.

8.49%

-0.56

40.15%

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)

37.88%

EBIT Growth (5y)

8.29%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.55

Sales to Capital Employed (avg)

3.21

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

19.75%

ROE (avg)

5.57%

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

1.58

EV to EBIT

15.05

EV to EBITDA

12.11

EV to Capital Employed

2.48

EV to Sales

0.24

PEG Ratio

Dividend Yield

ROCE (Latest)

16.46%

ROE (Latest)

2.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

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

15What is working for the Company

NET SALES(Q)

Highest at JPY 11,933.5 MM

NET PROFIT(Q)

At JPY 326.76 MM has Grown at 184.04%

RAW MATERIAL COST(Y)

Fallen by -2.1% (YoY

OPERATING PROFIT(Q)

Highest at JPY 425.31 MM

OPERATING PROFIT MARGIN(Q)

Highest at 3.56 %

PRE-TAX PROFIT(Q)

Highest at JPY 391.6 MM

-11What is not working for the Company

NET PROFIT(HY)

At JPY 224.79 MM has Grown at -36.1%

ROCE(HY)

Lowest at -3.64%

INTEREST(Q)

Highest at JPY 1.98 MM

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

Net Sales

Highest at JPY 11,933.5 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Profit

At JPY 326.76 MM has Grown at 184.04%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 11,933.5 MM has Grown at 29.44%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 425.31 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 3.56 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 391.6 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 391.6 MM has Grown at 91.95%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by -2.1% (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 Serverworks Co., Ltd.

Interest

At JPY 1.98 MM has Grown at 13.66%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 1.98 MM

in the last five periods and Increased by 13.66% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)