Smaregi, Inc. (4431) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Systena Corp.

I'LL Inc.

DTS Corp.

Zuken, Inc.

Comture Corp.

TechMatrix Corp.

Future Corp.

TRE Holdings Corp.

Computer Engineering & Consulting Ltd.

Daikoku Denki Co., Ltd.

Smaregi, Inc.

Why is Smaregi, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 16.72%

Healthy long term growth as Net Sales has grown by an annual rate of 26.54%
Company has very low debt and has enough cash to service the debt requirements

The company has declared Positive results for the last 11 consecutive quarters

ROCE(HY) Highest at 24.04%
NET SALES(Q) Highest at JPY 3,189.92 MM
DIVIDEND PAYOUT RATIO(Y) Highest at 71.9%

With ROE of 22.39%, it has a attractive valuation with a 9.39 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 -7.82%, its profits have risen by 49.2% ; the PEG ratio of the company is 0.9

Below par performance in long term as well as near term

Along with generating -7.82% 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 Smaregi, 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 Smaregi, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Smaregi, Inc.

-7.82%

0.89

43.44%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

26.54%

EBIT Growth (5y)

22.12%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.78

Sales to Capital Employed (avg)

1.36

Tax Ratio

30.48%

Dividend Payout Ratio

17.61%

Pledged Shares

Institutional Holding

ROCE (avg)

382.57%

ROE (avg)

16.72%

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

9.39

EV to EBIT

27.39

EV to EBITDA

24.25

EV to Capital Employed

39.66

EV to Sales

6.12

PEG Ratio

0.86

Dividend Yield

ROCE (Latest)

144.83%

ROE (Latest)

22.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

14What is working for the Company

ROCE(HY)

Highest at 24.04%

NET SALES(Q)

Highest at JPY 3,189.92 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 71.9%

CASH AND EQV(HY)

Highest at JPY 11,600.84 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 6.4%

DIVIDEND PER SHARE(HY)

Highest at JPY 15.19

-6What is not working for the Company

INTEREST(9M)

At JPY 0.07 MM has Grown at inf%

DEBT-EQUITY RATIO (HY)

Highest at -75.81 %

OPERATING PROFIT MARGIN(Q)

Lowest at 21.29 %

Here's what is working for Smaregi, Inc.

Net Sales

Highest at JPY 3,189.92 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

At JPY 3,189.92 MM has Grown at 36.18%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 11,600.84 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 6.4%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 15.19

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 71.9%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at JPY 135.19 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 135.19 MM has Grown at 40.18%

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 Smaregi, Inc.

Interest

At JPY 0.07 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 21.29 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -75.81 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio