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

Axis Co., Ltd. (Tokyo)

ibis, Inc.

Tokai Soft Co. Ltd.

SMN Corp.

Sinops, Inc.

Showa System Engineering Corp.

SHIKIGAKU Co., Ltd.

Nippon Ichi Software, Inc.

Nulab, Inc. (Japan)

CRI Middleware Co., Ltd.

Ficha, Inc.

Why is SHIKIGAKU Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 30.50

Poor long term growth as Operating profit has grown by an annual rate 3.16% of over the last 5 years

The company has declared Positive results for the last 4 consecutive quarters

NET SALES(HY) At JPY 3,819.95 MM has Grown at 42.39%
NET PROFIT(HY) Higher at JPY 399.95 MM
CASH AND EQV(HY) Highest at JPY 7,346.68 MM

With ROE of 13.66%, it has a attractive valuation with a 3.09 Price to Book Value

Over the past year, while the stock has generated a return of -13.18%, its profits have risen by 364.9% ; the PEG ratio of the company is 0.1

Below par performance in long term as well as near term

Along with generating -13.18% 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 hold?

Overall Portfolio exposure to SHIKIGAKU Co., Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is SHIKIGAKU Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

SHIKIGAKU Co., Ltd.

-13.18%

2.16

29.45%

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)

25.56%

EBIT Growth (5y)

3.16%

EBIT to Interest (avg)

37.07

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.17

Sales to Capital Employed (avg)

1.79

Tax Ratio

33.73%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

64.78%

ROE (avg)

8.51%

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

3.09

EV to EBIT

14.73

EV to EBITDA

12.32

EV to Capital Employed

-11.49

EV to Sales

0.91

PEG Ratio

0.06

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

13.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly 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

9What is working for the Company

NET SALES(HY)

At JPY 3,819.95 MM has Grown at 42.39%

NET PROFIT(HY)

Higher at JPY 399.95 MM

CASH AND EQV(HY)

Highest at JPY 7,346.68 MM

-14What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 13.33% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 157.29 times

OPERATING PROFIT(Q)

Lowest at JPY -30.39 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.08 %

PRE-TAX PROFIT(Q)

Lowest at JPY -50.31 MM

NET PROFIT(Q)

Lowest at JPY -43.74 MM

EPS(Q)

Lowest at JPY -6.31

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

Net Sales

At JPY 3,819.95 MM has Grown at 42.39%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 7,346.68 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 SHIKIGAKU Co., Ltd.

Pre-Tax Profit

At JPY -50.31 MM has Fallen at -144.85%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -43.74 MM has Fallen at -150.25%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit

Lowest at JPY -30.39 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -2.08 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -50.31 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 -43.74 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -6.31

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 157.29 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 13.33% (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