Solekia Ltd. (9867) 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

ONE CAREER, Inc.

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MicroAd, Inc.

Solekia Ltd.

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HEROZ, Inc.

IFIS Japan Ltd.

Planet, Inc.

Fuji Soft Service Bureau, Inc.

Broadband Tower, Inc.

ODK Solutions Co., Ltd.

Why is Solekia Ltd. ?

With ROE of 13.04%, it has a very attractive valuation with a 0.73 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 44.11%, its profits have risen by 54.7% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Solekia Ltd. should be less than 10%
Overall Portfolio exposure to Commercial Services & Supplies should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commercial Services & Supplies)

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

Is Solekia Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Solekia Ltd.

42.67%

1.46

37.60%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.22%

EBIT Growth (5y)

28.88%

EBIT to Interest (avg)

59.04

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.67

Sales to Capital Employed (avg)

1.92

Tax Ratio

35.84%

Dividend Payout Ratio

3.56%

Pledged Shares

Institutional Holding

ROCE (avg)

38.39%

ROE (avg)

8.66%

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

0.73

EV to EBIT

0.30

EV to EBITDA

0.29

EV to Capital Employed

0.19

EV to Sales

0.02

PEG Ratio

0.10

Dividend Yield

ROCE (Latest)

61.63%

ROE (Latest)

13.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Bearish

No Trend

OBV

Mildly Bullish

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

14What is working for the Company

ROCE(HY)

Highest at 14.21%

RAW MATERIAL COST(Y)

Fallen by -13.4% (YoY

CASH AND EQV(HY)

Highest at JPY 25,471.91 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 14.2 times

DIVIDEND PER SHARE(HY)

Highest at JPY 4.22

OPERATING PROFIT(Q)

Highest at JPY 1,177.73 MM

OPERATING PROFIT MARGIN(Q)

Highest at 13.2 %

PRE-TAX PROFIT(Q)

Highest at JPY 1,161.14 MM

NET PROFIT(Q)

Highest at JPY 736.33 MM

EPS(Q)

Highest at JPY 851.89

-12What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 8.22%

INTEREST(Q)

Highest at JPY 12.3 MM

Here's what is working for Solekia Ltd.

Operating Profit

Highest at JPY 1,177.73 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 13.2 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 1,161.14 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 736.33 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 851.89

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 25,471.91 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 14.2 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 4.22

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -13.4% (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

Depreciation

Highest at JPY 28.95 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 28.95 MM has Grown at 28.98%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Solekia Ltd.

Interest

At JPY 12.3 MM has Grown at 17.85%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 12.3 MM

in the last five periods and Increased by 17.85% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Dividend Payout Ratio

Lowest at 8.22%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)