Soft99 Corp. (4464) 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

SATO SHO-JI CORP.

Fuji Corp. (Miyagi)

Sanyo Trading Co., Ltd.

JK Holdings Co., Ltd.

Kanaden Corp.

Suzuden Corp.

Beauty Garage, Inc.

Tenpos Holdings Co., Ltd.

Soft99 Corp.

Onoken Co., Ltd.

Maruzen CHI Holdings Co., Ltd.

Why is Soft99 Corp. ?

Poor Management Efficiency with a low ROE of 5.03%

The company has been able to generate a Return on Equity (avg) of 5.03% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 7.33% of over the last 5 years

With ROE of 5.93%, it has a fair valuation with a 1.48 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 127.67%, its profits have risen by 33.7% ; the PEG ratio of the company is 0.7

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Soft99 Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Soft99 Corp.

125.51%

2.33

65.16%

Japan Nikkei 225

81.96%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.40%

EBIT Growth (5y)

7.33%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.39

Sales to Capital Employed (avg)

0.54

Tax Ratio

30.67%

Dividend Payout Ratio

31.81%

Pledged Shares

Institutional Holding

0.32%

ROCE (avg)

11.04%

ROE (avg)

5.03%

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

1.48

EV to EBIT

15.00

EV to EBITDA

11.89

EV to Capital Employed

1.77

EV to Sales

2.08

PEG Ratio

0.74

Dividend Yield

ROCE (Latest)

11.79%

ROE (Latest)

5.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 3,665.83 MM

ROCE(HY)

Highest at 5.67%

RAW MATERIAL COST(Y)

Fallen by -4.21% (YoY

CASH AND EQV(HY)

Highest at JPY 44,640.46 MM

NET SALES(Q)

Highest at JPY 8,372 MM

OPERATING PROFIT(Q)

Highest at JPY 1,644.82 MM

OPERATING PROFIT MARGIN(Q)

Highest at 19.65 %

PRE-TAX PROFIT(Q)

Highest at JPY 1,643.7 MM

NET PROFIT(Q)

Highest at JPY 1,130.71 MM

EPS(Q)

Highest at JPY 50.7

-8What is not working for the Company

INTEREST(9M)

At JPY 0.2 MM has Grown at inf%

INTEREST COVERAGE RATIO(Q)

Lowest at 834,932.49

DEBT-EQUITY RATIO (HY)

Highest at -36.61 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.13 times

Here's what is working for Soft99 Corp.

Operating Cash Flow

Highest at JPY 3,665.83 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

Highest at JPY 8,372 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,644.82 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 19.65 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 1,643.7 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,130.71 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 50.7

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 44,640.46 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -4.21% (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

Here's what is not working for Soft99 Corp.

Interest

At JPY 0.2 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 834,932.49

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -36.61 %

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

Debtors Turnover Ratio

Lowest at 5.13 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio