Softfront Holdings (2321) 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

Gooddays Holdings, Inc.

SIG Group Co., Ltd

e-Seikatsu Co., Ltd.

D.I. System Co., Ltd.

SIOS Corp.

Ubiteq, Inc.

Daiwa Computer Co., Ltd.

DIGITAL PLUS, Inc.

Softfront Holdings

Kokopelli, Inc.

GRCS, Inc.

Why is Softfront Holdings ?

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

The company has declared negative results in Mar 25 after 2 consecutive negative quarters

NET PROFIT(Q) At JPY -69.96 MM has Fallen at -359.82%
OPERATING PROFIT(Q) Lowest at JPY -69.05 MM
OPERATING PROFIT MARGIN(Q) Lowest at -32.89 %

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 78.05%, its profits have risen by 65.7%

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 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

78.05%

1.71

99.53%

Japan Nikkei 225

40.96%

1.44

28.42%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

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)

Net Debt to Equity (avg)

-1.15

Sales to Capital Employed (avg)

4.06

Tax Ratio

12.84%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

4.66%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

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

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

-5.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

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

1What is working for the Company

CASH AND EQV(HY)

Highest at JPY 3,732.82 MM

-20What is not working for the Company

NET PROFIT(Q)

At JPY -69.96 MM has Fallen at -359.82%

OPERATING PROFIT(Q)

Lowest at JPY -69.05 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -32.89 %

RAW MATERIAL COST(Y)

Grown by 14.62% (YoY

PRE-TAX PROFIT(Q)

Lowest at JPY -76.2 MM

Here's what is working for Softfront Holdings

Cash and Eqv

Highest at JPY 3,732.82 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 7.15 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 Softfront Holdings

Pre-Tax Profit

At JPY -76.2 MM has Fallen at -373.06%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -69.96 MM has Fallen at -359.82%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit

Lowest at JPY -69.05 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -32.89 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -76.2 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Raw Material Cost

Grown by 14.62% (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