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

Simplex Holdings, Inc.

Future Corp.

Systena Corp.

Comture Corp.

DTS Corp.

Daikoku Denki Co., Ltd.

Zuken, Inc.

TechMatrix Corp.

I'LL 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 18.76% and Operating profit at 18.67%
Company has very low debt and has enough cash to service the debt requirements
INTEREST(HY) At JPY 31.22 MM has Grown at 31.96%
OPERATING CASH FLOW(Y) Lowest at JPY 0 MM
ROCE(HY) Lowest at 18.01%

With ROE of 18.63%, it has a attractive valuation with a 3.97 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 -18.08%, its profits have risen by 9.7% ; the PEG ratio of the company is 2.2

Below par performance in long term as well as near term

Along with generating -18.08% 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 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.

-18.08%

-0.43

33.51%

Japan Nikkei 225

36.73%

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)

18.76%

EBIT Growth (5y)

18.67%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.00

Sales to Capital Employed (avg)

2.37

Tax Ratio

28.55%

Dividend Payout Ratio

33.62%

Pledged Shares

Institutional Holding

ROCE (avg)

513.98%

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

3.96

EV to EBIT

10.25

EV to EBITDA

7.47

EV to Capital Employed

-659.39

EV to Sales

1.10

PEG Ratio

2.20

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

18.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

INVENTORY TURNOVER RATIO(HY)

Highest at 74.36 times

CASH AND EQV(HY)

Highest at JPY 63,978.99 MM

DEBT-EQUITY RATIO (HY)

Lowest at -107.62 %

PRE-TAX PROFIT(Q)

Highest at JPY 1,918.56 MM

-12What is not working for the Company

INTEREST(HY)

At JPY 31.22 MM has Grown at 31.96%

OPERATING CASH FLOW(Y)

Lowest at JPY 0 MM

ROCE(HY)

Lowest at 18.01%

Here's what is working for TechMatrix Corp.

Inventory Turnover Ratio

Highest at 74.36 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

Pre-Tax Profit

Highest at JPY 1,918.56 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 63,978.99 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -107.62 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for TechMatrix Corp.

Interest

At JPY 31.22 MM has Grown at 31.96%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Cash Flow

Lowest at JPY 0 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)