Silicon Studio Corp. (3907) 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

Writeup Co., Ltd.

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Silicon Studio Corp.

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Eltes Co., Ltd.

Hotto Link, Inc.

Tecmira Holdings, Inc.

Why is Silicon Studio Corp. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 31.34

Poor long term growth as Net Sales has grown by an annual rate of -0.68% over the last 5 years

NET PROFIT(HY) At JPY 28 MM has Grown at -70.21%
PRE-TAX PROFIT(Q) At JPY 21 MM has Fallen at -68.89%
RAW MATERIAL COST(Y) Grown by 7.29% (YoY)

With ROE of 4.80%, it has a expensive valuation with a 1.32 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 -4.90%, its profits have fallen by -41.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.90% 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 Silicon Studio Corp. 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 Silicon Studio Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Silicon Studio Corp.

-100.0%

-0.74

49.77%

Japan Nikkei 225

58.12%

1.95

27.21%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.68%

EBIT Growth (5y)

15.08%

EBIT to Interest (avg)

48.32

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.56

Sales to Capital Employed (avg)

2.09

Tax Ratio

0.73%

Dividend Payout Ratio

13.33%

Pledged Shares

Institutional Holding

ROCE (avg)

29.38%

ROE (avg)

7.73%

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

1.32

EV to EBIT

11.53

EV to EBITDA

7.76

EV to Capital Employed

1.73

EV to Sales

0.29

PEG Ratio

Dividend Yield

ROCE (Latest)

14.99%

ROE (Latest)

4.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

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

DIVIDEND PAYOUT RATIO(Y)

Highest at 46.53%

NET PROFIT(9M)

Higher at JPY 181 MM

DEBT-EQUITY RATIO (HY)

Lowest at -67.48 %

DIVIDEND PER SHARE(HY)

Highest at JPY 6.31

-15What is not working for the Company

NET PROFIT(HY)

At JPY 28 MM has Grown at -70.21%

PRE-TAX PROFIT(Q)

At JPY 21 MM has Fallen at -68.89%

RAW MATERIAL COST(Y)

Grown by 7.29% (YoY

INTEREST(Q)

Highest at JPY 3 MM

Here's what is working for Silicon Studio Corp.

Debt-Equity Ratio

Lowest at -67.48 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at JPY 6.31

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 46.53%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at JPY 15 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 Silicon Studio Corp.

Net Profit

At JPY 28 MM has Grown at -70.21%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 21 MM has Fallen at -68.89%

over average net sales of the previous four periods of JPY 67.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest

At JPY 3 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 3 MM

in the last five periods and Increased by inf% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 7.29% (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