SHIKIGAKU Co., Ltd. (7049) 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

ibis, Inc.

Axis Co., Ltd. (Tokyo)

CRI Middleware Co., Ltd.

SMN Corp.

Showa System Engineering Corp.

Tokai Soft Co. Ltd.

Sinops, Inc.

Ficha, Inc.

SHIKIGAKU Co., Ltd.

Nippon Ichi Software, Inc.

Nulab, Inc. (Japan)

Why is SHIKIGAKU Co., Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate 53.01% of over the last 5 years

Negative results in Feb 26

RAW MATERIAL COST(Y) Grown by 15.02% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 155.58 times
OPERATING PROFIT(Q) Lowest at JPY -285.63 MM

With ROE of 14.52%, it has a fair valuation with a 2.43 Price to Book Value

Over the past year, while the stock has generated a return of -7.39%, its profits have risen by 24.5% ; the PEG ratio of the company is 0.7

Below par performance in long term as well as near term

Along with generating -7.39% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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 Software Products)

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

Is SHIKIGAKU Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

SHIKIGAKU Co., Ltd.

-100.0%

3.20

23.63%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.59%

EBIT Growth (5y)

53.01%

EBIT to Interest (avg)

37.07

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.03

Sales to Capital Employed (avg)

1.86

Tax Ratio

33.73%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

64.78%

ROE (avg)

8.92%

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

2.43

EV to EBIT

4.56

EV to EBITDA

4.24

EV to Capital Employed

-9.51

EV to Sales

0.59

PEG Ratio

0.68

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

14.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

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

4What is working for the Company

NET SALES(9M)

At JPY 5,217.55 MM has Grown at 29.18%

CASH AND EQV(HY)

Highest at JPY 6,783.54 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 10.77 times

-18What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 15.02% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 155.58 times

OPERATING PROFIT(Q)

Lowest at JPY -285.63 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -20.44 %

PRE-TAX PROFIT(Q)

Lowest at JPY -298.91 MM

NET PROFIT(Q)

Lowest at JPY -98.6 MM

EPS(Q)

Lowest at JPY -11.72

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

Net Sales

At JPY 5,217.55 MM has Grown at 29.18%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 6,783.54 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 10.77 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 16.85 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 SHIKIGAKU Co., Ltd.

Pre-Tax Profit

At JPY -298.91 MM has Fallen at -686.22%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -98.6 MM has Fallen at -303.63%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit

Lowest at JPY -285.63 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -20.44 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -298.91 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 -98.6 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -11.72

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 155.58 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 15.02% (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