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.

Virtualex Holdings, Inc.

D.I. System Co., Ltd.

AsiaQuest Co., Ltd.

Sharing Innovations Inc.

eXmotion Co., Ltd.

SCAT, Inc.

infoNet Inc.

Softfront Holdings

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 32.88%

With a growth in Operating Profit of 4.92%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
ROCE(HY) Highest at 8.34%
DIVIDEND PER SHARE(HY) Highest at JPY 5.97
RAW MATERIAL COST(Y) Fallen by -4.71% (YoY)

With ROE of 8.45%, it has a very attractive valuation with a 0.94 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 12.61%, its profits have risen by 43.8% ; the PEG ratio of the company is 0.3

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.

12.61%

0.85

26.87%

Japan Nikkei 225

75.22%

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)

4.47%

EBIT Growth (5y)

32.88%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.64

Sales to Capital Employed (avg)

2.14

Tax Ratio

34.46%

Dividend Payout Ratio

51.64%

Pledged Shares

Institutional Holding

ROCE (avg)

30.45%

ROE (avg)

6.98%

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

0.94

EV to EBIT

2.55

EV to EBITDA

2.18

EV to Capital Employed

0.84

EV to Sales

0.14

PEG Ratio

0.25

Dividend Yield

ROCE (Latest)

32.82%

ROE (Latest)

8.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

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

10What is working for the Company

ROCE(HY)

Highest at 8.34%

DIVIDEND PER SHARE(HY)

Highest at JPY 5.97

RAW MATERIAL COST(Y)

Fallen by -4.71% (YoY

NET SALES(Q)

Highest at JPY 2,590.67 MM

OPERATING PROFIT(Q)

Highest at JPY 221.47 MM

PRE-TAX PROFIT(Q)

Highest at JPY 222.48 MM

NET PROFIT(Q)

Highest at JPY 146.49 MM

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Dividend per share

Highest at JPY 5.97 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 2,590.67 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 221.47 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 222.48 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 222.48 MM has Grown at 51.45%

over average net sales of the previous four periods of JPY 146.9 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 146.49 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -4.71% (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