TechMatrix Corp. (3762) 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

Comture Corp.

I'LL Inc.

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Systena Corp.

Future Corp.

TechMatrix Corp.

DTS Corp.

Daikoku Denki Co., Ltd.

Simplex Holdings, Inc.

Net One Systems Co., Ltd.

Infocom Corp.

Why is TechMatrix Corp. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 17.76%

Healthy long term growth as Net Sales has grown by an annual rate of 18.78% and Operating profit at 16.61%
Company has very low debt and has enough cash to service the debt requirements

With ROE of 18.75%, it has a very attractive valuation with a 2.91 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 8.16%, its profits have risen by 9.2% ; the PEG ratio of the company is 1.7

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to TechMatrix Corp. 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 TechMatrix Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

TechMatrix Corp.

6.78%

0.47

36.52%

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)

18.78%

EBIT Growth (5y)

16.61%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.00

Sales to Capital Employed (avg)

2.40

Tax Ratio

28.08%

Dividend Payout Ratio

40.35%

Pledged Shares

Institutional Holding

ROCE (avg)

724.66%

ROE (avg)

17.76%

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

2.91

EV to EBIT

6.45

EV to EBITDA

4.67

EV to Capital Employed

-12.20

EV to Sales

0.68

PEG Ratio

1.68

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

18.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

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

5What is working for the Company

ROCE(HY)

Highest at 21.37%

INVENTORY TURNOVER RATIO(HY)

Highest at 79.38 times

NET SALES(Q)

At JPY 18,885.22 MM has Grown at 19.05%

-4What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 5.72% (YoY

INTEREST(Q)

Highest at JPY 27.02 MM

Here's what is working for TechMatrix Corp.

Inventory Turnover Ratio

Highest at 79.38 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

At JPY 18,885.22 MM has Grown at 19.05%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Depreciation

Highest at JPY 760.78 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 TechMatrix Corp.

Interest

At JPY 27.02 MM has Grown at 266.06%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 27.02 MM

in the last five periods and Increased by 266.06% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 5.72% (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 0.05 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income