Techfirm Holdings, Inc. (3625) 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

Benefit Japan Co., Ltd.

IPS Inc. /Japan/

AI CROSS, Inc.

Fibergate, Inc.

U-NEXT HOLDINGS Co., Ltd.

Accrete, Inc.

Techfirm Holdings, Inc.

Kanda Tsushinki Co., Ltd.

SoftBank Group Corp.

Giga Prize Co., Ltd.

JTOWER, Inc.

Why is Techfirm Holdings, Inc. ?

Poor Management Efficiency with a low ROE of 5.55%

The company has been able to generate a Return on Equity (avg) of 5.55% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 21.15% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 5.55% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.99% and Operating profit at 21.15% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At JPY 8.9 MM has Grown at 45.7%
RAW MATERIAL COST(Y) Grown by 10.4% (YoY)

With ROE of 14.06%, it has a fair valuation with a 1.42 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 -22.05%, its profits have fallen by -13.4%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Techfirm Holdings, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Techfirm Holdings, Inc.

-100.0%

0.31

42.21%

Japan Nikkei 225

60.14%

2.05

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.99%

EBIT Growth (5y)

21.15%

EBIT to Interest (avg)

30.71

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.60

Sales to Capital Employed (avg)

1.64

Tax Ratio

33.15%

Dividend Payout Ratio

11.31%

Pledged Shares

Institutional Holding

ROCE (avg)

28.82%

ROE (avg)

5.55%

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

1.42

EV to EBIT

4.30

EV to EBITDA

4.19

EV to Capital Employed

1.96

EV to Sales

0.37

PEG Ratio

Dividend Yield

ROCE (Latest)

45.72%

ROE (Latest)

14.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

No Trend

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

2What is working for the Company

CASH AND EQV(HY)

Highest at JPY 5,732.19 MM

NET SALES(Q)

Highest at JPY 1,825.38 MM

-9What is not working for the Company

INTEREST(HY)

At JPY 8.9 MM has Grown at 45.7%

RAW MATERIAL COST(Y)

Grown by 10.4% (YoY

Here's what is working for Techfirm Holdings, Inc.

Net Sales

Highest at JPY 1,825.38 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 5,732.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 4.51 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Here's what is not working for Techfirm Holdings, Inc.

Interest

At JPY 8.9 MM has Grown at 45.7%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 10.4% (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