TDC SOFT, Inc. (4687) 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

FURYU CORP.

TDC SOFT, Inc.

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Sun Asterisk, Inc.

Why is TDC SOFT, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 14.90%

Healthy long term growth as Net Sales has grown by an annual rate of 9.83% and Operating profit at 16.68%
Company has very low debt and has enough cash to service the debt requirements

With ROE of 16.44%, it has a very attractive valuation with a 3.17 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 -26.17%, its profits have risen by 11.2%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to TDC SOFT, 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 TDC SOFT, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

TDC SOFT, Inc.

-26.17%

-0.23

33.64%

Japan Nikkei 225

38.94%

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)

9.83%

EBIT Growth (5y)

16.68%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.70

Sales to Capital Employed (avg)

2.09

Tax Ratio

29.58%

Dividend Payout Ratio

37.06%

Pledged Shares

Institutional Holding

ROCE (avg)

69.82%

ROE (avg)

14.90%

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

3.17

EV to EBIT

10.80

EV to EBITDA

10.40

EV to Capital Employed

8.36

EV to Sales

1.16

PEG Ratio

Dividend Yield

ROCE (Latest)

77.45%

ROE (Latest)

16.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

2What is working for the Company

CASH AND EQV(HY)

Highest at JPY 28,163.37 MM

PRE-TAX PROFIT(Q)

Highest at JPY 1,498.29 MM

-6What is not working for the Company

INTEREST(Q)

At JPY 1.77 MM has Grown at 112.59%

RAW MATERIAL COST(Y)

Grown by 7.98% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -59.91 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 72.31 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.96 times

Here's what is working for TDC SOFT, Inc.

Pre-Tax Profit

Highest at JPY 1,498.29 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Cash and Eqv

Highest at JPY 28,163.37 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for TDC SOFT, Inc.

Interest

At JPY 1.77 MM has Grown at 112.59%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -59.91 %

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

Inventory Turnover Ratio

Lowest at 72.31 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 6.96 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 7.98% (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