SYSTEMS DESIGN Co., Ltd. (3766) 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

SIG Group Co., Ltd

SYSTEMS DESIGN Co., Ltd.

AsiaQuest Co., Ltd.

Virtualex Holdings, Inc.

D.I. System Co., Ltd.

eXmotion Co., Ltd.

SCAT, Inc.

infoNet Inc.

Softfront Holdings

Sharing Innovations Inc.

Media Kobo, Inc.

Why is SYSTEMS DESIGN Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Operating profit has grown by an annual rate 29.50%

With a growth in Net Profit of 62.86%, the company declared Very Positive results in Dec 25

ROCE(HY) Highest at 8.41%
RAW MATERIAL COST(Y) Fallen by -3.51% (YoY)
OPERATING PROFIT(Q) Highest at JPY 215.35 MM

With ROE of 6.55%, it has a very attractive valuation with a 0.85 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 19.15%, its profits have fallen by -17.6%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to SYSTEMS DESIGN 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 SYSTEMS DESIGN Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

SYSTEMS DESIGN Co., Ltd.

19.15%

0.69

28.75%

Japan Nikkei 225

41.2%

1.44

28.42%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.85%

EBIT Growth (5y)

29.50%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.64

Sales to Capital Employed (avg)

2.16

Tax Ratio

34.46%

Dividend Payout Ratio

51.64%

Pledged Shares

Institutional Holding

ROCE (avg)

30.45%

ROE (avg)

6.93%

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

0.85

EV to EBIT

2.19

EV to EBITDA

1.77

EV to Capital Employed

0.59

EV to Sales

0.10

PEG Ratio

Dividend Yield

ROCE (Latest)

27.01%

ROE (Latest)

6.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

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

7What is working for the Company

ROCE(HY)

Highest at 8.41%

RAW MATERIAL COST(Y)

Fallen by -3.51% (YoY

OPERATING PROFIT(Q)

Highest at JPY 215.35 MM

OPERATING PROFIT MARGIN(Q)

Highest at 8.7 %

PRE-TAX PROFIT(Q)

Highest at JPY 197.99 MM

EPS(Q)

Highest at JPY 38.61

-1What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -63.42 %

Here's what is working for SYSTEMS DESIGN Co., Ltd.

Operating Profit

Highest at JPY 215.35 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 8.7 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 197.99 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

EPS

Highest at JPY 38.61

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -3.51% (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

At JPY 26.2 MM has Grown at 38.53%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for SYSTEMS DESIGN Co., Ltd.

Debt-Equity Ratio

Highest at -63.42 %

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