Softcreate Holdings Corp. (3371) 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

SRA Holdings, Inc.

Comture Corp.

Zuken, Inc.

Computer Engineering & Consulting Ltd.

TechMatrix Corp.

Smaregi, Inc.

Softcreate Holdings Corp.

Daikoku Denki Co., Ltd.

JFE Systems, Inc.

TRE Holdings Corp.

SB Technology Corp.

Why is Softcreate Holdings Corp. ?

With ROE of 18.93%, it has a very attractive valuation with a 1.94 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 -18.39%, its profits have risen by 23.9% ; the PEG ratio of the company is 0.4

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Softcreate Holdings 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 Softcreate Holdings Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Softcreate Holdings Corp.

-15.8%

-0.39

27.58%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.84%

EBIT Growth (5y)

14.50%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.70

Sales to Capital Employed (avg)

1.43

Tax Ratio

30.09%

Dividend Payout Ratio

37.10%

Pledged Shares

Institutional Holding

0.44%

ROCE (avg)

82.36%

ROE (avg)

19.32%

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

1.94

EV to EBIT

4.85

EV to EBITDA

3.94

EV to Capital Employed

4.06

EV to Sales

0.89

PEG Ratio

0.43

Dividend Yield

ROCE (Latest)

83.77%

ROE (Latest)

18.93%

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

Mildly 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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.96% (YoY

CASH AND EQV(HY)

Highest at JPY 31,000.39 MM

-12What is not working for the Company

INTEREST(HY)

At JPY 0.53 MM has Grown at 3,714.29%

INTEREST COVERAGE RATIO(Q)

Lowest at 312,664.04

DEBT-EQUITY RATIO (HY)

Highest at -60.21 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 37.12 times

Here's what is working for Softcreate Holdings Corp.

Cash and Eqv

Highest at JPY 31,000.39 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 1.96% (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 475.47 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 Softcreate Holdings Corp.

Interest

At JPY 0.53 MM has Grown at 3,714.29%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 312,664.04

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 -60.21 %

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

Inventory Turnover Ratio

Lowest at 37.12 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at JPY 0.21 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income