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

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Software Service, Inc.

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GREE, Inc.

Why is Software Service, Inc. ?

High Management Efficiency with a high ROE of 13.19%

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

With a growth in Net Sales of 34.55%, the company declared Very Positive results in Apr 26

CASH AND EQV(HY) Highest at JPY 37,704 MM
INVENTORY TURNOVER RATIO(HY) Highest at 15.81 times
NET SALES(Q) Highest at JPY 14,930 MM

With ROE of 13.69%, it has a very attractive valuation with a 1.54 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 -24.61%, its profits have risen by 18.2% ; the PEG ratio of the company is 0.6

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.

-24.65%

-1.07

30.25%

Japan Nikkei 225

69.64%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.95%

EBIT Growth (5y)

17.58%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.55

Sales to Capital Employed (avg)

1.04

Tax Ratio

26.69%

Dividend Payout Ratio

13.70%

Pledged Shares

Institutional Holding

0.57%

ROCE (avg)

31.75%

ROE (avg)

13.19%

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

1.54

EV to EBIT

5.85

EV to EBITDA

5.39

EV to Capital Employed

1.93

EV to Sales

1.11

PEG Ratio

0.62

Dividend Yield

ROCE (Latest)

32.90%

ROE (Latest)

13.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

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

13What is working for the Company

CASH AND EQV(HY)

Highest at JPY 37,704 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 15.81 times

NET SALES(Q)

Highest at JPY 14,930 MM

OPERATING PROFIT(Q)

Highest at JPY 2,799 MM

PRE-TAX PROFIT(Q)

Highest at JPY 2,685 MM

-1What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 20.05% (YoY

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

Net Sales

At JPY 14,930 MM has Grown at 34.55%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Sales

Highest at JPY 14,930 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 2,799 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 2,685 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Cash and Eqv

Highest at JPY 37,704 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 15.81 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Software Service, Inc.

Raw Material Cost

Grown by 20.05% (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