System Support, Inc. (4396) 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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Why is System Support, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 23.84%

Healthy long term growth as Net Sales has grown by an annual rate of 14.12% and Operating profit at 23.51%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 75.62

With a growth in Operating Profit of 25.83%, the company declared Very Positive results in Dec 25

DIVIDEND PER SHARE(HY) Highest at JPY 6.21
RAW MATERIAL COST(Y) Fallen by -5.24% (YoY)
CASH AND EQV(HY) Highest at JPY 11,576.38 MM

With ROE of 25.92%, it has a very attractive valuation with a 4.43 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 6.41%, its profits have risen by 25.5% ; the PEG ratio of the company is 0.7

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to System Support, 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 System Support, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

System Support, Inc.

6.41%

-0.68

61.39%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.12%

EBIT Growth (5y)

23.51%

EBIT to Interest (avg)

75.62

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

3.33

Tax Ratio

32.72%

Dividend Payout Ratio

35.35%

Pledged Shares

Institutional Holding

ROCE (avg)

62.69%

ROE (avg)

23.84%

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

4.43

EV to EBIT

10.63

EV to EBITDA

9.52

EV to Capital Employed

6.87

EV to Sales

0.90

PEG Ratio

0.68

Dividend Yield

ROCE (Latest)

64.65%

ROE (Latest)

25.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

14What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 6.21

RAW MATERIAL COST(Y)

Fallen by -5.24% (YoY

CASH AND EQV(HY)

Highest at JPY 11,576.38 MM

NET SALES(Q)

Highest at JPY 8,029.46 MM

OPERATING PROFIT(Q)

Highest at JPY 1,081.34 MM

OPERATING PROFIT MARGIN(Q)

Highest at 13.47 %

PRE-TAX PROFIT(Q)

Highest at JPY 1,036 MM

NET PROFIT(Q)

Highest at JPY 657.57 MM

EPS(Q)

Highest at JPY 31.75

-8What is not working for the Company

INTEREST(HY)

At JPY 24.05 MM has Grown at 66.34%

Here's what is working for System Support, Inc.

Dividend per share

Highest at JPY 6.21 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 8,029.46 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,081.34 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 13.47 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 1,036 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 657.57 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 31.75

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 11,576.38 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -5.24% (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

Depreciation

Highest at JPY 72.9 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for System Support, Inc.

Interest

At JPY 24.05 MM has Grown at 66.34%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)