Why is Softfront Holdings ?
1
Poor Management Efficiency with a low ROE of 4.66%
- The company has been able to generate a Return on Equity (avg) of 4.66% signifying low profitability per unit of shareholders funds
2
The company has declared negative results in Mar'2025 after 2 consecutive positive quarters
- NET PROFIT(HY) At JPY -105.71 MM has Grown at -82.68%
3
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 115.38%, its profits have risen by 65.7%
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 Computers - Software & Consulting)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Softfront Holdings for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Softfront Holdings
115.38%
1.57
90.25%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
23.11%
EBIT Growth (5y)
16.89%
EBIT to Interest (avg)
-36.36
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-1.15
Sales to Capital Employed (avg)
4.19
Tax Ratio
12.84%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
4.66%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
4.56
EV to EBIT
146.26
EV to EBITDA
73.84
EV to Capital Employed
-22.27
EV to Sales
5.09
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
-5.06%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
8What is working for the Company
ROCE(HY)
Highest at -5.37%
RAW MATERIAL COST(Y)
Fallen by -50.11% (YoY
NET PROFIT(9M)
Higher at JPY -78.78 MM
CASH AND EQV(HY)
Highest at JPY 3,433.18 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 7.99%
NET SALES(Q)
At JPY 202.13 MM has Grown at 23.64%
PRE-TAX PROFIT(Q)
At JPY -11.15 MM has Grown at 74.86%
-4What is not working for the Company
NET PROFIT(HY)
At JPY -105.71 MM has Grown at -82.68%
Here's what is working for Softfront Holdings
Net Sales
At JPY 202.13 MM has Grown at 23.64%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Pre-Tax Profit
At JPY -11.15 MM has Grown at 74.86%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Cash and Eqv
Highest at JPY 3,433.18 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 7.99%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -50.11% (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 Softfront Holdings
Net Profit
At JPY -105.71 MM has Grown at -82.68%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)






