SHIFT, Inc. (3697) 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

OTSUKA CORP.

NEC Networks & System Integration Corp.

OBIC Co. Ltd.

Fujitsu Ltd.

TIS, Inc. (Japan)

Nomura Research Institute Ltd.

NEC Corp.

NS Solutions Corp.

GMO Internet Group, Inc.

SHIFT, Inc.

Fuji Soft, Inc.

Why is SHIFT, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 19.10%

Healthy long term growth as Net Sales has grown by an annual rate of 37.87% and Operating profit at 43.34%
Company has very low debt and has enough cash to service the debt requirements

Negative results in Nov 25

INTEREST(HY) At JPY 79 MM has Grown at 125.71%
INTEREST COVERAGE RATIO(Q) Lowest at 9,702.63
INVENTORY TURNOVER RATIO(HY) Lowest at 50.22 times

With ROE of 22.30%, it has a expensive valuation with a 12.94 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 -48.06%, its profits have risen by 10.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -48.06% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SHIFT, Inc. 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 SHIFT, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

SHIFT, Inc.

-48.06%

-0.67

51.25%

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)

37.87%

EBIT Growth (5y)

43.34%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

2.36

Tax Ratio

38.36%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

42.89%

ROE (avg)

19.10%

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

12.94

EV to EBIT

32.79

EV to EBITDA

26.54

EV to Capital Employed

18.42

EV to Sales

3.80

PEG Ratio

Dividend Yield

ROCE (Latest)

56.17%

ROE (Latest)

22.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

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

3What is working for the Company

NET SALES(Q)

Highest at JPY 34,845 MM

CASH AND EQV(HY)

Highest at JPY 49,044 MM

-18What is not working for the Company

INTEREST(HY)

At JPY 79 MM has Grown at 125.71%

INTEREST COVERAGE RATIO(Q)

Lowest at 9,702.63

INVENTORY TURNOVER RATIO(HY)

Lowest at 50.22 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.38 times

OPERATING PROFIT(Q)

Lowest at JPY 3,687 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.58 %

PRE-TAX PROFIT(Q)

Lowest at JPY 2,778 MM

NET PROFIT(Q)

Lowest at JPY 1,795 MM

Here's what is working for SHIFT, Inc.

Net Sales

Highest at JPY 34,845 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 49,044 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for SHIFT, Inc.

Interest

At JPY 79 MM has Grown at 125.71%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 9,702.63 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 3,687 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 10.58 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 2,778 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 1,795 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 50.22 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 9.38 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio