Software Service, Inc. (3733) 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

Argo Graphics, Inc.

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Software Service, Inc.

Miroku Jyoho Service Co., Ltd.

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Infomart Corp.

COLOPL, Inc.

PKSHA Technology, Inc.

GREE, Inc.

Why is Software Service, Inc. ?

High Management Efficiency with a high ROE of 13.26%

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

With a growth in Net Sales of 3.92%, the company declared Outstanding results in Oct 25

DIVIDEND PER SHARE(HY) Highest at JPY 5.86
RAW MATERIAL COST(Y) Fallen by -20.98% (YoY)
CASH AND EQV(HY) Highest at JPY 38,708 MM

With ROE of 13.15%, it has a expensive valuation with a 1.94 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 5.70%, its profits have fallen by -14.6%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Software Service, Inc. 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 Software Service, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Software Service, Inc.

5.7%

-0.74

27.81%

Japan Nikkei 225

38.94%

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)

10.42%

EBIT Growth (5y)

10.46%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

1.05

Tax Ratio

26.69%

Dividend Payout Ratio

13.70%

Pledged Shares

Institutional Holding

0.57%

ROCE (avg)

31.75%

ROE (avg)

13.26%

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

1.94

EV to EBIT

8.57

EV to EBITDA

7.61

EV to Capital Employed

2.60

EV to Sales

1.52

PEG Ratio

Dividend Yield

ROCE (Latest)

30.36%

ROE (Latest)

13.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

21What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 5.86

RAW MATERIAL COST(Y)

Fallen by -20.98% (YoY

CASH AND EQV(HY)

Highest at JPY 38,708 MM

NET SALES(Q)

Highest at JPY 13,554 MM

PRE-TAX PROFIT(Q)

Highest at JPY 2,562 MM

NET PROFIT(Q)

Highest at JPY 2,000 MM

EPS(Q)

Highest at JPY 382.04

-2What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 41.88%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.86 times

Here's what is working for Software Service, Inc.

Net Sales

At JPY 13,554 MM has Grown at 46.92%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Dividend per share

Highest at JPY 5.86 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 13,554 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 2,562 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 2,562 MM has Grown at 115.33%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 2,000 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 2,000 MM has Grown at 87.73%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 382.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 38,708 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -20.98% (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 Software Service, Inc.

Debtors Turnover Ratio

Lowest at 5.86 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 41.88%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)