Soliton Systems KK (3040) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Soliton Systems KK

Remixpoint, Inc.

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Computer Institute of Japan, Ltd.

System Research Co., Ltd.

LAC Co., Ltd.

Core Corp.

E-Guardian, Inc.

Nippon Information Development Co., Ltd.

TerraSky Co., Ltd.

Why is Soliton Systems KK ?

High Management Efficiency with a high ROE of 18.89%

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

Positive results in Jun 25

DIVIDEND PER SHARE(HY) Highest at JPY 6.81
DIVIDEND PAYOUT RATIO(Y) Highest at 272.31%
RAW MATERIAL COST(Y) Fallen by 1.56% (YoY)

With ROE of 14.58%, it has a very attractive valuation with a 2.19 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 67.15%, its profits have fallen by -5.9%

Market Beating performance in long term as well as near term

Along with generating 67.15% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Soliton Systems KK should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Soliton Systems KK for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Soliton Systems KK

67.15%

2.00

34.62%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.49%

EBIT Growth (5y)

15.16%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.22

Sales to Capital Employed (avg)

1.69

Tax Ratio

15.60%

Dividend Payout Ratio

55.87%

Pledged Shares

Institutional Holding

ROCE (avg)

557.71%

ROE (avg)

18.89%

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

2.19

EV to EBIT

5.35

EV to EBITDA

4.60

EV to Capital Employed

-4.30

EV to Sales

0.62

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

14.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

7What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 6.81

DIVIDEND PAYOUT RATIO(Y)

Highest at 272.31%

RAW MATERIAL COST(Y)

Fallen by 1.56% (YoY

NET PROFIT(9M)

Higher at JPY 1,590.08 MM

CASH AND EQV(HY)

Highest at JPY 30,088 MM

DEBT-EQUITY RATIO (HY)

Lowest at -125.82 %

-12What is not working for the Company

NET PROFIT(Q)

At JPY 178.41 MM has Fallen at -59.12%

ROCE(HY)

Lowest at 14.65%

NET SALES(Q)

At JPY 4,125 MM has Fallen at -11.37%

PRE-TAX PROFIT(Q)

Lowest at JPY 220 MM

Here's what is working for Soliton Systems KK

Dividend per share

Highest at JPY 6.81 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Cash and Eqv

Highest at JPY 30,088 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -125.82 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 272.31%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 1.56% (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 Soliton Systems KK

Pre-Tax Profit

At JPY 220 MM has Fallen at -57.38%

over average net sales of the previous four periods of JPY 516.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 178.41 MM has Fallen at -59.12%

over average net sales of the previous four periods of JPY 436.42 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

At JPY 4,125 MM has Fallen at -11.37%

over average net sales of the previous four periods of JPY 4,654 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Pre-Tax Profit

Lowest at JPY 220 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)