ScoreWhy is Sourcenext Corp. ?
1
Poor Management Efficiency with a low ROCE of 0.84%
- The company has been able to generate a Return on Capital Employed (avg) of 0.84% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of -2.02% and Operating profit at -230.75% over the last 5 years
3
Flat results in Mar 26
- ROCE(HY) Lowest at -35.28%
- NET SALES(Q) At JPY 2,867.7 MM has Fallen at -7.24%
- INTEREST(Q) Highest at JPY 25.16 MM
4
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -39.88%, its profits have risen by 40%
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -39.88% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Sourcenext Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sourcenext Corp.
-39.88%
-1.30
37.13%
Japan Nikkei 225
88.41%
3.12
27.27%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-2.02%
EBIT Growth (5y)
-230.75%
EBIT to Interest (avg)
-34.22
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.08
Sales to Capital Employed (avg)
0.92
Tax Ratio
4.96%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.84%
ROE (avg)
0.37%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
2.89
EV to EBIT
-9.94
EV to EBITDA
-72.86
EV to Capital Employed
2.94
EV to Sales
1.40
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-29.62%
ROE (Latest)
-27.43%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -1.97% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 2.1 times
-6What is not working for the Company
ROCE(HY)
Lowest at -35.28%
NET SALES(Q)
At JPY 2,867.7 MM has Fallen at -7.24%
INTEREST(Q)
Highest at JPY 25.16 MM
Here's what is working for Sourcenext Corp.
Inventory Turnover Ratio
Highest at 2.1 times
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 -1.97% (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 Sourcenext Corp.
Interest
At JPY 25.16 MM has Grown at 14.66%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Sales
At JPY 2,867.7 MM has Fallen at -7.24%
over average net sales of the previous four periods of JPY 3,091.42 MMMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Interest
Highest at JPY 25.16 MM
in the last five periods and Increased by 14.66% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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