System Research Co., Ltd. (3771) 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

ULS Group, Inc.

ID Holdings Corp.

System Research Co., Ltd.

IBJ, Inc.

TerraSky Co., Ltd.

Core Corp.

Toho System Science Co., Ltd.

Computer Institute of Japan, Ltd.

JASTEC Co., Ltd.

Remixpoint, Inc.

Quantum Solutions Co., Ltd.

Why is System Research Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 18.36%

Healthy long term growth as Net Sales has grown by an annual rate of 11.70% and Operating profit at 16.98%
Company has very low debt and has enough cash to service the debt requirements

With ROE of 19.24%, it has a very attractive valuation with a 2.32 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 -15.51%, its profits have risen by 14.8% ; the PEG ratio of the company is 0.8

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to System Research 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 System Research Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

System Research Co., Ltd.

-100.0%

0.67

24.08%

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)

11.70%

EBIT Growth (5y)

16.98%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.58

Sales to Capital Employed (avg)

2.02

Tax Ratio

25.43%

Dividend Payout Ratio

44.44%

Pledged Shares

Institutional Holding

ROCE (avg)

67.67%

ROE (avg)

18.36%

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

2.32

EV to EBIT

6.80

EV to EBITDA

6.34

EV to Capital Employed

3.74

EV to Sales

0.81

PEG Ratio

0.82

Dividend Yield

ROCE (Latest)

54.94%

ROE (Latest)

19.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.48% (YoY

CASH AND EQV(HY)

Highest at JPY 15,880.35 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 6.01 times

-12What is not working for the Company

INTEREST(HY)

At JPY 5.88 MM has Grown at 8.21%

INTEREST COVERAGE RATIO(Q)

Lowest at 21,018.05

INVENTORY TURNOVER RATIO(HY)

Lowest at 321.72 times

OPERATING PROFIT(Q)

Lowest at JPY 613.73 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.26 %

PRE-TAX PROFIT(Q)

Lowest at JPY 540.49 MM

NET PROFIT(Q)

Lowest at JPY 390.16 MM

EPS(Q)

Lowest at JPY 23.52

Here's what is working for System Research Co., Ltd.

Cash and Eqv

Highest at JPY 15,880.35 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 6.01 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 1.48% (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 System Research Co., Ltd.

Interest Coverage Ratio

Lowest at 21,018.05

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At JPY 5.88 MM has Grown at 8.21%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 613.73 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 8.26 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 540.49 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 390.16 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 23.52

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 321.72 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio