Softmax Co., Ltd. (Japan) (3671) 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

Datasection, Inc.

Capital Asset Planning, Inc.

WITZ Corp.

Science Arts, Inc.

System Integrator Corp.

Appirits Inc.

Softmax Co., Ltd. (Japan)

Brains Technology, Inc.

Aplix Corp.

Kushim, Inc. (Japan)

iRidge, Inc.

Why is Softmax Co., Ltd. (Japan) ?

With a fall in Operating Profit of -30.29%, the company declared Very Negative results in Jun 26

NET SALES(Q) At JPY 1,591.45 MM has Fallen at -36.32%
ROCE(HY) Lowest at 13.65%
DEBT-EQUITY RATIO (HY) Highest at -8.41 %

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -18.01% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

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 Software Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Softmax Co., Ltd. (Japan) for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Softmax Co., Ltd. (Japan)

-100.0%

-1.69

35.81%

Japan Nikkei 225

43.52%

1.48

29.43%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.76%

EBIT Growth (5y)

2.91%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

1.23

Tax Ratio

27.99%

Dividend Payout Ratio

41.90%

Pledged Shares

Institutional Holding

ROCE (avg)

39.47%

ROE (avg)

15.26%

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

1.79

EV to EBIT

8.97

EV to EBITDA

8.45

EV to Capital Employed

1.88

EV to Sales

0.82

PEG Ratio

Dividend Yield

ROCE (Latest)

20.93%

ROE (Latest)

14.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -48.46% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 21.67 times

-28What is not working for the Company

NET SALES(Q)

At JPY 1,591.45 MM has Fallen at -36.32%

ROCE(HY)

Lowest at 13.65%

DEBT-EQUITY RATIO (HY)

Highest at -8.41 %

INTEREST COVERAGE RATIO(Q)

Lowest at 1,810.22

INTEREST(Q)

Highest at JPY 6.79 MM

OPERATING PROFIT(Q)

Lowest at JPY 122.91 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 119.1 MM

NET PROFIT(Q)

Lowest at JPY 80.77 MM

EPS(Q)

Lowest at JPY 3.36

Here's what is working for Softmax Co., Ltd. (Japan)

Inventory Turnover Ratio

Highest at 21.67 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -48.46% (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 Softmax Co., Ltd. (Japan)

Net Sales

At JPY 1,591.45 MM has Fallen at -36.32%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Interest

At JPY 6.79 MM has Grown at 16.17%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,810.22

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -8.41 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at JPY 6.79 MM

in the last five periods and Increased by 16.17% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 122.91 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 119.1 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Fallen at -35.29%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 80.77 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

Fallen at -37.42%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 3.36

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

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