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

Capital Asset Planning, Inc.

WITZ Corp.

Brains Technology, Inc.

Science Arts, Inc.

iRidge, Inc.

System Integrator Corp.

Datasection, Inc.

Softmax Co., Ltd. (Japan)

Kushim, Inc. (Japan)

Appirits 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

Negative results in Dec 25

INTEREST COVERAGE RATIO(Q) Lowest at 3,709.65
NET SALES(Q) At JPY 1,689.92 MM has Fallen at -16.03%
PRE-TAX PROFIT(Q) At JPY 218.42 MM has Fallen at -47.27%

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 45.11%, its profits have risen by 72.8% ; the PEG ratio of the company is 0.1

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)

45.11%

-0.62

97.13%

Japan Nikkei 225

36.73%

1.30

28.24%

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)

1.24

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

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

5What is working for the Company

NET SALES(9M)

At JPY 5,582 MM has Grown at 23.3%

DIVIDEND PAYOUT RATIO(Y)

Highest at 134.65%

RAW MATERIAL COST(Y)

Fallen by 0.22% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 4.85

-21What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 3,709.65

NET SALES(Q)

At JPY 1,689.92 MM has Fallen at -16.03%

PRE-TAX PROFIT(Q)

At JPY 218.42 MM has Fallen at -47.27%

DEBT-EQUITY RATIO (HY)

Highest at -16.29 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.14 times

INTEREST(Q)

Highest at JPY 5.38 MM

NET PROFIT(Q)

Fallen at -37.23%

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

Dividend per share

Highest at JPY 4.85

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 134.65%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.22% (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)

Interest Coverage Ratio

Lowest at 3,709.65 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At JPY 1,689.92 MM has Fallen at -16.03%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest

At JPY 5.38 MM has Grown at 93%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 218.42 MM has Fallen at -47.27%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest

Highest at JPY 5.38 MM

in the last five periods and Increased by 93% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

Fallen at -37.23%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -16.29 %

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

Inventory Turnover Ratio

Lowest at 7.14 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio