Why is Software Service, Inc. ?
1
High Management Efficiency with a high ROE of 13.26%
2
Company has very low debt and has enough cash to service the debt requirements
- RAW MATERIAL COST(Y) Fallen by 0.53% (YoY)
- CASH AND EQV(HY) Highest at JPY 36,569 MM
- DEBT-EQUITY RATIO (HY) Lowest at -55.05 %
3
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 -4.14%, its profits have fallen by -14.6%
4
Below par performance in long term as well as near term
- Along with generating -4.14% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
How much should you hold?
- 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.
-4.14%
-0.46
28.71%
Japan Nikkei 225
28.54%
1.11
25.75%
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)
0
Net Debt to Equity (avg)
-0.41
Sales to Capital Employed (avg)
1.06
Tax Ratio
26.69%
Dividend Payout Ratio
13.74%
Pledged Shares
0
Institutional Holding
0.57%
ROCE (avg)
31.75%
ROE (avg)
13.26%
Valuation Key Factors 
Factor
Value
P/E Ratio
15
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
NA
Dividend Yield
NA
ROCE (Latest)
30.36%
ROE (Latest)
13.15%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
5What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 0.53% (YoY
CASH AND EQV(HY)
Highest at JPY 36,569 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -55.05 %
INVENTORY TURNOVER RATIO(HY)
Highest at 13.61%
OPERATING PROFIT MARGIN(Q)
Highest at 24.59 %
-2What is not working for the Company
ROCE(HY)
Lowest at 12.8%
Here's what is working for Software Service, Inc.
Operating Profit Margin
Highest at 24.59 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Cash and Eqv
Highest at JPY 36,569 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -55.05 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 13.61%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 0.53% (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






