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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Capital Asset Planning, Inc.

Science Arts, Inc.

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WITZ Corp.

System Integrator Corp.

Softmax Co., Ltd. (Japan)

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Kushim, Inc. (Japan)

iRidge, Inc.

Datasection, Inc.

Aplix Corp.

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

High Management Efficiency with a high ROE of 15.26%

Company has very low debt and has enough cash to service the debt requirements

Flat results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 9,831.42
RAW MATERIAL COST(Y) Grown by 46.27% (YoY)
INTEREST(Q) Highest at JPY 1.86 MM

With ROE of 18.39%, it has a very attractive valuation with a 1.70 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 44.82%, its profits have risen by 72.8% ; the PEG ratio of the company is 0.1

Market Beating Performance

The stock has generated a return of 44.82% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Softmax Co., Ltd. (Japan) should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

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

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Softmax Co., Ltd. (Japan)

44.82%

-0.62

95.35%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.55%

EBIT Growth (5y)

14.33%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

1.25

Tax Ratio

31.28%

Dividend Payout Ratio

37.48%

Pledged Shares

Institutional Holding

ROCE (avg)

46.29%

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

1.70

EV to EBIT

5.00

EV to EBITDA

4.77

EV to Capital Employed

2.18

EV to Sales

0.77

PEG Ratio

0.13

Dividend Yield

ROCE (Latest)

43.62%

ROE (Latest)

18.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

18What is working for the Company

NET PROFIT(HY)

At JPY 305.45 MM has Grown at 119.3%

ROCE(HY)

Highest at 18.92%

NET SALES(Q)

Highest at JPY 2,499.25 MM

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 9,831.42

RAW MATERIAL COST(Y)

Grown by 46.27% (YoY

INTEREST(Q)

Highest at JPY 1.86 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.32 %

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

Net Sales

At JPY 2,499.25 MM has Grown at 74.89%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (JPY MM)

Net Profit

At JPY 305.45 MM has Grown at 119.3%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 2,499.25 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Here's what is not working for Softmax Co., Ltd. (Japan)

Interest

At JPY 1.86 MM has Grown at 15.44%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 9,831.42

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 1.86 MM

in the last five periods and Increased by 15.44% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 7.32 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 46.27% (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