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

Comture Corp.

SRA Holdings, Inc.

SB Technology Corp.

Smaregi, Inc.

Softcreate Holdings Corp.

Daikoku Denki Co., Ltd.

Zuken, Inc.

TechMatrix Corp.

JFE Systems, Inc.

Computer Engineering & Consulting Ltd.

TRE Holdings Corp.

Why is Softcreate Holdings Corp. ?

High Management Efficiency with a high ROE of 19.20%

Company has very low debt and has enough cash to service the debt requirements

With ROE of 18.73%, it has a very attractive valuation with a 2.78 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 -4.80%, its profits have risen by 5.9% ; the PEG ratio of the company is 2.5

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.

-4.8%

-0.17

28.02%

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)

5.39%

EBIT Growth (5y)

18.22%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.70

Sales to Capital Employed (avg)

1.47

Tax Ratio

30.04%

Dividend Payout Ratio

38.75%

Pledged Shares

Institutional Holding

0.44%

ROCE (avg)

93.39%

ROE (avg)

19.20%

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

2.78

EV to EBIT

8.10

EV to EBITDA

6.61

EV to Capital Employed

6.93

EV to Sales

1.44

PEG Ratio

2.50

Dividend Yield

ROCE (Latest)

85.55%

ROE (Latest)

18.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

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

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.84% (YoY

CASH AND EQV(HY)

Highest at JPY 32,850.92 MM

NET SALES(Q)

Highest at JPY 8,643.2 MM

OPERATING PROFIT(Q)

Highest at JPY 2,199.98 MM

OPERATING PROFIT MARGIN(Q)

Highest at 25.45 %

PRE-TAX PROFIT(Q)

Highest at JPY 1,854.26 MM

-5What is not working for the Company

INTEREST(9M)

At JPY 0.01 MM has Grown at inf%

Here's what is working for Softcreate Holdings Corp.

Net Sales

Highest at JPY 8,643.2 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 2,199.98 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 25.45 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 1,854.26 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Cash and Eqv

Highest at JPY 32,850.92 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -0.84% (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 375.97 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 0.01 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)