Showcase, Inc. (Japan) (3909) 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

Jorudan Co., Ltd.

Encourage Technologies Co., Ltd.

Showcase, Inc. (Japan)

Succeed Co., Ltd. (Tokyo)

Internetworking & Broadband Consulting Co., Ltd.

Vario Secure, Inc.

HOUSEI, Inc.

Fuva Brain Ltd.

Innovation, Inc.

enish, Inc.

Temona, Inc.

Why is Showcase, Inc. (Japan) ?

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -11.62

Poor long term growth as Operating profit has grown by an annual rate 14.89% of over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -11.62
The company has been able to generate a Return on Equity (avg) of 8.99% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 14.89% of over the last 5 years

Flat results in Mar 26

NET SALES(HY) At JPY 1,668.7 MM has Grown at -36.41%
NET PROFIT(HY) At JPY 670.18 MM has Grown at -46.48%
INTEREST(Q) At JPY 3.95 MM has Grown at 42%

With ROE of 55.17%, it has a very attractive valuation with a 1.40 Price to Book Value

Over the past year, while the stock has generated a return of -39.49%, its profits have risen by 490% ; the PEG ratio of the company is 0

Below par performance in long term as well as near term

Along with generating -39.49% 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 Showcase, Inc. (Japan) 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 Showcase, Inc. (Japan) for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Showcase, Inc. (Japan)

-100.0%

-0.89

42.44%

Japan Nikkei 225

75.22%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.65%

EBIT Growth (5y)

14.89%

EBIT to Interest (avg)

-11.62

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.69

Sales to Capital Employed (avg)

2.15

Tax Ratio

14.02%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.61%

ROE (avg)

8.99%

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

1.40

EV to EBIT

22.78

EV to EBITDA

12.67

EV to Capital Employed

1.49

EV to Sales

0.72

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

6.55%

ROE (Latest)

55.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

6What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 676.32 MM has Grown at 1,347.07%

NET PROFIT(Q)

At JPY 644.31 MM has Grown at 1,073.82%

-11What is not working for the Company

NET SALES(HY)

At JPY 1,668.7 MM has Grown at -36.41%

NET PROFIT(HY)

At JPY 670.18 MM has Grown at -46.48%

INTEREST(Q)

At JPY 3.95 MM has Grown at 42%

RAW MATERIAL COST(Y)

Grown by 23.27% (YoY

CASH AND EQV(HY)

Lowest at JPY 1,702.8 MM

Here's what is working for Showcase, Inc. (Japan)

Pre-Tax Profit

At JPY 676.32 MM has Grown at 1,347.07%

over average net sales of the previous four periods of JPY 46.74 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 644.31 MM has Grown at 1,073.82%

over average net sales of the previous four periods of JPY 54.89 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Depreciation

At JPY 26.77 MM has Grown at 718.05%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Showcase, Inc. (Japan)

Net Sales

At JPY 1,668.7 MM has Grown at -36.41%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest

At JPY 3.95 MM has Grown at 42%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 1,702.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 23.27% (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