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
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -36.36
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -36.36
- The company has been able to generate a Return on Equity (avg) of 4.66% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 22.61% over the last 5 years
4
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -28.57%, its profits have fallen by -5412.3%
5
Underperformed the market in the last 1 year
- Even though the market (Japan Nikkei 225) has generated returns of 43.58% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -28.57% returns
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
-25.4%
0.82
88.31%
Japan Nikkei 225
43.58%
1.48
29.43%
Quality key factors
Factor
Value
Sales Growth (5y)
22.61%
EBIT Growth (5y)
-278.13%
EBIT to Interest (avg)
-65.49
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-1.15
Sales to Capital Employed (avg)
3.76
Tax Ratio
7.41%
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
3.69
EV to EBIT
-66.44
EV to EBITDA
-106.09
EV to Capital Employed
241.62
EV to Sales
5.82
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-363.67%
ROE (Latest)
-10.23%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Bullish
Technical Movement
12What is working for the Company
NET PROFIT(HY)
Higher at JPY -15.75 MM
NET SALES(Q)
At JPY 236.93 MM has Grown at 17.22%
PRE-TAX PROFIT(Q)
At JPY -1.75 MM has Grown at 84.25%
-3What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at -91.78 %
RAW MATERIAL COST(Y)
Grown by 7.48% (YoY
Here's what is working for Softfront Holdings
Net Profit
Higher at JPY -15.75 MM
than preceding 12 month period ended Jun 2026MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (JPY MM)
Net Profit
At JPY -15.75 MM has Grown at 85.1%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Net Sales
At JPY 236.93 MM has Grown at 17.22%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Pre-Tax Profit
At JPY -1.75 MM has Grown at 84.25%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Depreciation
Highest at JPY 7.71 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Softfront Holdings
Debt-Equity Ratio
Highest at -91.78 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 7.48% (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
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