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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

KSK Co., Ltd.

Soliton Systems KK

Toumei Co. Ltd.

Systems Engineering Consultants Co., Ltd.

TASUKI Corp.

Nippon Information Development Co., Ltd.

System Information Co., Ltd.

SpiderPlus & Co.

Pole To Win Holdings, Inc.

MedPeer, Inc.

Minkabu The Infonoid Inc.

Why is Systems Engineering Consultants Co., Ltd. ?

High Management Efficiency with a high ROE of 12.32%

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

With ROE of 14.40%, it has a very attractive valuation with a 2.94 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 40.05%, its profits have risen by 21.6% ; the PEG ratio of the company is 0.9

Market Beating Performance

The stock has generated a return of 40.05% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you buy?

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.

40.05%

-0.52

67.20%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.17%

EBIT Growth (5y)

14.02%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

1.05

Tax Ratio

29.03%

Dividend Payout Ratio

41.73%

Pledged Shares

Institutional Holding

ROCE (avg)

26.57%

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

2.94

EV to EBIT

14.05

EV to EBITDA

13.69

EV to Capital Employed

3.53

EV to Sales

2.45

PEG Ratio

0.94

Dividend Yield

ROCE (Latest)

25.13%

ROE (Latest)

14.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

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

7What is working for the Company

NET SALES(HY)

At JPY 5,502.38 MM has Grown at 18.77%

ROCE(HY)

Highest at 15.12%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.68%

-19What is not working for the Company

INTEREST(HY)

At JPY 0.53 MM has Grown at 49.58%

INTEREST COVERAGE RATIO(Q)

Lowest at 135,288.79

RAW MATERIAL COST(Y)

Grown by 7.71% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 37.37%

OPERATING PROFIT(Q)

Lowest at JPY 301.69 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.12 %

PRE-TAX PROFIT(Q)

Lowest at JPY 322.13 MM

NET PROFIT(Q)

Lowest at JPY 222.17 MM

EPS(Q)

Lowest at JPY 43.56

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

Net Sales

At JPY 5,502.38 MM has Grown at 18.77%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debtors Turnover Ratio

Highest at 4.68%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Systems Engineering Consultants Co., Ltd.

Interest

At JPY 0.53 MM has Grown at 49.58%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 135,288.79

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 301.69 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 13.12 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 322.13 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 222.17 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 43.56

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 37.37%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 7.71% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at JPY 0.1 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income