SMN Corp. (6185) 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

TeamSpirit, Inc.

Rakumo, Inc.

SMN Corp.

Showa System Engineering Corp.

BlueMeme, Inc.

Dawn Corp.

Nulab, Inc. (Japan)

ImageONE Co., Ltd.

Ficha, Inc.

All About, Inc.

TECHNOLOGIES, Inc.

Why is SMN Corp. ?

Poor Management Efficiency with a low ROE of 2.14%

The company has been able to generate a Return on Equity (avg) of 2.14% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 20.72

Poor long term growth as Operating profit has grown by an annual rate -20.39% of over the last 5 years

With a growth in Net Sales of 5.06%, the company declared Very Positive results in Dec 25

NET PROFIT(HY) At JPY 170.81 MM has Grown at 157.87%
ROCE(HY) Highest at 12.01%
DEBT-EQUITY RATIO (HY) Lowest at -71.1 %

With ROE of 7.79%, it has a attractive valuation with a 1.72 Price to Book Value

Over the past year, while the stock has generated a return of -4.23%, its profits have risen by 189.7% ; the PEG ratio of the company is 0.1

Below par performance in long term as well as near term

Along with generating -4.23% 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 SMN Corp. 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 SMN Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

SMN Corp.

-4.23%

0.61

44.62%

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)

0.06%

EBIT Growth (5y)

-20.39%

EBIT to Interest (avg)

20.72

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.60

Sales to Capital Employed (avg)

2.33

Tax Ratio

8.99%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.07%

ROE (avg)

2.14%

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

1.72

EV to EBIT

18.63

EV to EBITDA

5.64

EV to Capital Employed

2.82

EV to Sales

0.38

PEG Ratio

0.12

Dividend Yield

ROCE (Latest)

15.14%

ROE (Latest)

7.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

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

13What is working for the Company

NET PROFIT(HY)

At JPY 170.81 MM has Grown at 157.87%

ROCE(HY)

Highest at 12.01%

DEBT-EQUITY RATIO (HY)

Lowest at -71.1 %

CASH AND EQV(HY)

Highest at JPY 5,747.9 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 9.63 times

-6What is not working for the Company

INTEREST(Q)

At JPY 3.56 MM has Grown at 48.03%

RAW MATERIAL COST(Y)

Grown by 10.54% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 7.02 %

PRE-TAX PROFIT(Q)

At JPY 90.73 MM has Fallen at -29.8%

NET PROFIT(Q)

At JPY 68.01 MM has Fallen at -41.78%

Here's what is working for SMN Corp.

Debt-Equity Ratio

Lowest at -71.1 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Cash and Eqv

Highest at JPY 5,747.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 9.63 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for SMN Corp.

Interest

At JPY 3.56 MM has Grown at 48.03%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 7.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At JPY 90.73 MM has Fallen at -29.8%

over average net sales of the previous four periods of JPY 129.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 68.01 MM has Fallen at -41.78%

over average net sales of the previous four periods of JPY 116.8 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Raw Material Cost

Grown by 10.54% (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