SOLXYZ Co., Ltd. (4284) 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

AGS Corp.

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Needs Well, Inc.

pluszero, Inc.

Uluru Co., Ltd.

SOLXYZ Co., Ltd.

Scala, Inc. (Japan)

J-Stream, Inc.

LaKeel, Inc.

Why is SOLXYZ Co., Ltd. ?

High Management Efficiency with a high ROE of 11.69%

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

Poor long term growth as Net Sales has grown by an annual rate of 5.65% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 5,427.08
DEBT-EQUITY RATIO (HY) Highest at -37.37 %
INVENTORY TURNOVER RATIO(HY) Lowest at 44.14 times

With ROE of 14.07%, it has a very attractive valuation with a 1.90 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 4.19%, its profits have risen by 50.3% ; the PEG ratio of the company is 0.3

Underperformed the market in the last 1 year

The stock has generated a return of 4.19% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 72.58%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SOLXYZ Co., Ltd. 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 SOLXYZ Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

SOLXYZ Co., Ltd.

4.19%

1.11

30.46%

Japan Nikkei 225

72.58%

2.78

26.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.65%

EBIT Growth (5y)

10.50%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.46

Sales to Capital Employed (avg)

1.97

Tax Ratio

30.22%

Dividend Payout Ratio

36.95%

Pledged Shares

Institutional Holding

ROCE (avg)

27.59%

ROE (avg)

11.69%

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

1.90

EV to EBIT

6.71

EV to EBITDA

5.01

EV to Capital Employed

2.71

EV to Sales

0.54

PEG Ratio

0.27

Dividend Yield

ROCE (Latest)

40.45%

ROE (Latest)

14.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.68% (YoY

CASH AND EQV(HY)

Highest at JPY 9,631.48 MM

-18What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 5,427.08

DEBT-EQUITY RATIO (HY)

Highest at -37.37 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 44.14 times

INTEREST(Q)

Highest at JPY 8.19 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.16 %

Here's what is working for SOLXYZ Co., Ltd.

Cash and Eqv

Highest at JPY 9,631.48 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 1.68% (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 SOLXYZ Co., Ltd.

Interest Coverage Ratio

Lowest at 5,427.08 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At JPY 8.19 MM has Grown at 12.63%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -37.37 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at JPY 8.19 MM

in the last five periods and Increased by 12.63% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 10.16 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 44.14 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio