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 reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward
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 -43.29%, its profits have fallen by -5412.3%
5
Below par performance in long term as well as near term
- Along with generating -43.29% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
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, Medium Return
Absolute
Risk Adjusted
Volatility
Softfront Holdings
-45.97%
0.74
83.51%
Japan Nikkei 225
60.14%
2.04
29.37%
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
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
16What is working for the Company
ROCE(HY)
Highest at -6.53%
CASH AND EQV(HY)
Highest at JPY 3,501.97 MM
NET SALES(Q)
Highest at JPY 340.48 MM
PRE-TAX PROFIT(Q)
Highest at JPY 5.21 MM
NET PROFIT(Q)
Highest at JPY -3.23 MM
EPS(Q)
Highest at JPY -0.06
-7What is not working for the Company
NET PROFIT(9M)
At JPY -83.85 MM has Grown at -103.44%
RAW MATERIAL COST(Y)
Grown by 36.29% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -93.8 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.08 times
Here's what is working for Softfront Holdings
Net Sales
At JPY 340.48 MM has Grown at 52.47%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Net Sales
Highest at JPY 340.48 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Pre-Tax Profit
Highest at JPY 5.21 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Pre-Tax Profit
At JPY 5.21 MM has Grown at 107.22%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY -3.23 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Net Profit
At JPY -3.23 MM has Grown at 96.31%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY -0.06
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Cash and Eqv
Highest at JPY 3,501.97 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Depreciation
Highest at JPY 7.34 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 -93.8 %
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
Debtors Turnover Ratio
Lowest at 4.08 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 36.29% (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






