SPARX Group Co., Ltd. (8739) 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

SBI Global Asset Management Co. Ltd.

SPARX Group Co., Ltd.

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Wealth Management, Inc. (Japan)

Japan Infrastructure Fund Investment Corp.

Benefit One Inc.

Why is SPARX Group Co., Ltd. ?

Positive results in Jun 26

ROCE(HY) Highest at 20.83%
INTEREST COVERAGE RATIO(Q) Highest at 12,454.29
RAW MATERIAL COST(Y) Fallen by 0% (YoY)

With ROE of 16.28%, it has a very attractive valuation with a 2.30 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 57.55%, its profits have risen by 23% ; the PEG ratio of the company is 0.6

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to SPARX Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

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

Is SPARX Group Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

SPARX Group Co., Ltd.

57.55%

1.41

31.23%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.50%

EBIT Growth (5y)

9.10%

EBIT to Interest (avg)

98.19

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

33.36%

Dividend Payout Ratio

55.76%

Pledged Shares

Institutional Holding

ROCE (avg)

101.58%

ROE (avg)

17.09%

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

2.30

EV to EBIT

7.26

EV to EBITDA

7.02

EV to Capital Employed

3.60

EV to Sales

3.44

PEG Ratio

0.61

Dividend Yield

ROCE (Latest)

49.50%

ROE (Latest)

16.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

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

19What is working for the Company

ROCE(HY)

Highest at 20.83%

INTEREST COVERAGE RATIO(Q)

Highest at 12,454.29

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.31 times

NET SALES(Q)

Highest at JPY 7,132 MM

PRE-TAX PROFIT(Q)

Highest at JPY 4,227 MM

NET PROFIT(Q)

Highest at JPY 2,893.16 MM

EPS(Q)

Highest at JPY 73.32

-8What is not working for the Company

INTEREST(HY)

At JPY 69 MM has Grown at 13.11%

Here's what is working for SPARX Group Co., Ltd.

Net Sales

At JPY 7,132 MM has Grown at 38.71%

over average net sales of the previous four periods of JPY 5,141.5 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Interest Coverage Ratio

Highest at 12,454.29

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at JPY 7,132 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 4,227 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 4,227 MM has Grown at 76.47%

over average net sales of the previous four periods of JPY 2,395.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 2,893.16 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 2,893.16 MM has Grown at 81.28%

over average net sales of the previous four periods of JPY 1,596 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 73.32

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Highest at 4.31 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 0% (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 SPARX Group Co., Ltd.

Interest

At JPY 69 MM has Grown at 13.11%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)