Systems Engineering Consultants Co., Ltd. (3741) 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

KSK Co., Ltd.

Nippon Information Development Co., Ltd.

Toumei Co. Ltd.

Soliton Systems KK

TASUKI Corp.

Systems Engineering Consultants Co., Ltd.

SpiderPlus & Co.

Minkabu The Infonoid Inc.

Pole To Win Holdings, Inc.

MedPeer, Inc.

System Information Co., Ltd.

Why is Systems Engineering Consultants Co., Ltd. ?

Flat results in Mar 26

INTEREST(HY) At JPY 0.61 MM has Grown at 23.73%
DEBTORS TURNOVER RATIO(HY) Lowest at 1.72 times

With ROE of 14.73%, it has a attractive valuation with a 3.32 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 -39.73%, its profits have risen by 15.9%

Below par performance in long term as well as near term

Along with generating -39.73% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Systems Engineering Consultants 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 Engineering Consultants Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Systems Engineering Consultants Co., Ltd.

-39.61%

-0.40

72.78%

Japan Nikkei 225

59.79%

2.06

29.57%

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)

14.72%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

1.08

Tax Ratio

26.82%

Dividend Payout Ratio

40.57%

Pledged Shares

Institutional Holding

ROCE (avg)

26.53%

ROE (avg)

12.32%

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

3.32

EV to EBIT

15.31

EV to EBITDA

14.87

EV to Capital Employed

4.65

EV to Sales

2.59

PEG Ratio

Dividend Yield

ROCE (Latest)

30.37%

ROE (Latest)

14.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

7What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 1.72

RAW MATERIAL COST(Y)

Fallen by 0.11% (YoY

CASH AND EQV(HY)

Highest at JPY 7,044.31 MM

PRE-TAX PROFIT(Q)

Highest at JPY 588.41 MM

NET PROFIT(Q)

Highest at JPY 474.84 MM

EPS(Q)

Highest at JPY 46.51

-9What is not working for the Company

INTEREST(HY)

At JPY 0.61 MM has Grown at 23.73%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.72 times

Here's what is working for Systems Engineering Consultants Co., Ltd.

Dividend per share

Highest at JPY 1.72 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Pre-Tax Profit

Highest at JPY 588.41 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 474.84 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 46.51

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 7,044.31 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.11% (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 21.14 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Depreciation

At JPY 21.14 MM has Grown at 40.27%

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 Engineering Consultants Co., Ltd.

Interest

At JPY 0.61 MM has Grown at 23.73%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 1.72 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at JPY 0.13 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income