Sumasapo, Inc. () 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

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Softmax Co., Ltd. (Japan)

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Sumasapo, Inc.

Appirits Inc.

Nippon RAD Inc.

CyberStep, Inc.

Why is Sumasapo, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 14.86%

Healthy long term growth as Net Sales has grown by an annual rate of 308.30% and Operating profit at 118.32%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 30.35

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

INTEREST(HY) At JPY 0.51 MM has Grown at 20.76%
DEBT-EQUITY RATIO (HY) Highest at -53.82 %
DEBTORS TURNOVER RATIO(HY) Lowest at 32.96 times

With ROE of 17.59%, it has a expensive valuation with a 5.29 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 -19.48%, its profits have fallen by -30.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -19.48% 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 Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sumasapo, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is Sumasapo, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sumasapo, Inc.

-19.48%

-0.72

48.66%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

308.30%

EBIT Growth (5y)

118.32%

EBIT to Interest (avg)

30.35

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.59

Sales to Capital Employed (avg)

5.05

Tax Ratio

9.72%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

39.74%

ROE (avg)

14.86%

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

5.29

EV to EBIT

17.89

EV to EBITDA

12.70

EV to Capital Employed

9.04

EV to Sales

0.98

PEG Ratio

Dividend Yield

ROCE (Latest)

50.51%

ROE (Latest)

17.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.17% (YoY

-18What is not working for the Company

INTEREST(HY)

At JPY 0.51 MM has Grown at 20.76%

DEBT-EQUITY RATIO (HY)

Highest at -53.82 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 32.96 times

NET PROFIT(Q)

Fallen at -39.85%

Here's what is working for Sumasapo, Inc.

Raw Material Cost

Fallen by -3.17% (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 Sumasapo, Inc.

Interest

At JPY 0.51 MM has Grown at 20.76%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

Fallen at -39.85%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -53.82 %

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

Debtors Turnover Ratio

Lowest at 32.96 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio