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.

Business Engineering Corp.

MarkLines Co., Ltd.

oRo Co., Ltd.

Baudroie, Inc.

Alpha Systems, Inc.

NSW, Inc. (Japan)

Global Security Experts, Inc.

Fixstars Corp.

Serverworks Co., Ltd.

INES Corp.

Why is Serverworks Co., Ltd. ?

Poor Management Efficiency with a low ROE of 5.55%

The company has been able to generate a Return on Equity (avg) of 5.55% signifying low profitability per unit of shareholders funds

Flat results in Nov 25

INTEREST(9M) At JPY 0.85 MM has Grown at inf%
NET PROFIT(9M) At JPY 299.32 MM has Grown at -42.82%
ROCE(HY) Lowest at -2.98%

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 -20.71%, its profits have risen by 5.9% ; the PEG ratio of the company is 4.6

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 36.73% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -20.71% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Serverworks Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Serverworks Co., Ltd.

-20.71%

-0.81

44.22%

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)

39.29%

EBIT Growth (5y)

20.75%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.58

Sales to Capital Employed (avg)

2.88

Tax Ratio

32.23%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

20.75%

ROE (avg)

5.55%

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

1.63

EV to EBIT

11.27

EV to EBITDA

9.66

EV to Capital Employed

2.51

EV to Sales

0.34

PEG Ratio

4.56

Dividend Yield

ROCE (Latest)

22.25%

ROE (Latest)

6.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

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

6What is working for the Company

NET SALES(Q)

Highest at JPY 10,333.38 MM

OPERATING PROFIT(Q)

Highest at JPY 298.41 MM

PRE-TAX PROFIT(Q)

Highest at JPY 364.42 MM

NET PROFIT(Q)

Highest at JPY 359.53 MM

EPS(Q)

Highest at JPY 51.48

-10What is not working for the Company

INTEREST(9M)

At JPY 0.85 MM has Grown at inf%

NET PROFIT(9M)

At JPY 299.32 MM has Grown at -42.82%

ROCE(HY)

Lowest at -2.98%

RAW MATERIAL COST(Y)

Grown by 13.52% (YoY

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

Net Sales

Highest at JPY 10,333.38 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 298.41 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 364.42 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 359.53 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 359.53 MM has Grown at 113.48%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 51.48

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Here's what is not working for Serverworks Co., Ltd.

Interest

At JPY 0.85 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 13.52% (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