Simplex Holdings, Inc. () 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 Corp.

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NS Solutions Corp.

Simplex Holdings, Inc.

TIS, Inc. (Japan)

SHIFT, Inc.

Fuji Soft, Inc.

NEC Networks & System Integration Corp.

Net One Systems Co., Ltd.

Infocom Corp.

Why is Simplex Holdings, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 16.68%

Healthy long term growth as Net Sales has grown by an annual rate of 23.14% and Operating profit at 32.46%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 42.48

Flat results in Jun 26

INTEREST COVERAGE RATIO(Q) Lowest at 5,360.53
INTEREST(Q) Highest at JPY 76 MM
OPERATING PROFIT MARGIN(Q) Lowest at 25.25 %

With ROCE of 27.57%, it has a expensive valuation with a 4.35 Enterprise value to Capital Employed

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 -75.02%, its profits have risen by 35.4%

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 59.79% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -75.02% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Simplex Holdings, 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 Simplex Holdings, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Simplex Holdings, Inc.

-75.02%

-0.71

88.15%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.14%

EBIT Growth (5y)

32.46%

EBIT to Interest (avg)

52.41

Debt to EBITDA (avg)

0.44

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.72

Tax Ratio

26.63%

Dividend Payout Ratio

38.78%

Pledged Shares

Institutional Holding

0.34%

ROCE (avg)

18.86%

ROE (avg)

13.33%

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

4.41

EV to EBIT

15.76

EV to EBITDA

13.34

EV to Capital Employed

4.34

EV to Sales

3.88

PEG Ratio

Dividend Yield

ROCE (Latest)

27.57%

ROE (Latest)

20.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

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

8What is working for the Company

NET SALES(HY)

At JPY 32,285 MM has Grown at 20.74%

ROCE(HY)

Highest at 21.84%

RAW MATERIAL COST(Y)

Fallen by -5.35% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.33 times

-11What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 5,360.53

INTEREST(Q)

Highest at JPY 76 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 25.25 %

Here's what is working for Simplex Holdings, Inc.

Net Sales

At JPY 32,285 MM has Grown at 20.74%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debtors Turnover Ratio

Highest at 5.33 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -5.35% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 678 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 Simplex Holdings, Inc.

Interest

At JPY 76 MM has Grown at 61.7%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 5,360.53

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 76 MM

in the last five periods and Increased by 61.7% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 25.25 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales