TIS, Inc. (Japan) (3626) 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

OBIC Co. Ltd.

OTSUKA CORP.

NEC Corp.

GMO Internet Group, Inc.

Fujitsu Ltd.

NS Solutions Corp.

Nomura Research Institute Ltd.

TIS, Inc. (Japan)

SHIFT, Inc.

Fuji Soft, Inc.

NEC Networks & System Integration Corp.

Why is TIS, Inc. (Japan) ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 15.91%

Healthy long term growth as Operating profit has grown by an annual rate 10.83%
Company has very low debt and has enough cash to service the debt requirements

Negative results in Jun 26

ROCE(HY) Lowest at 15.41%
INTEREST COVERAGE RATIO(Q) Lowest at 9,539.51
DEBT-EQUITY RATIO (HY) Highest at -6.94 %

With ROE of 17.84%, it has a fair valuation with a 2.17 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 -25.99%, its profits have risen by 5.3% ; the PEG ratio of the company is 2.3

Below par performance in long term as well as near term

Along with generating -25.99% 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 TIS, Inc. (Japan) 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 TIS, Inc. (Japan) for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

TIS, Inc. (Japan)

-26.41%

0.63

37.81%

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)

5.96%

EBIT Growth (5y)

10.83%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

1.57

Tax Ratio

29.52%

Dividend Payout Ratio

39.04%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

27.06%

ROE (avg)

15.91%

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

2.17

EV to EBIT

8.86

EV to EBITDA

7.03

EV to Capital Employed

2.37

EV to Sales

1.12

PEG Ratio

2.29

Dividend Yield

ROCE (Latest)

26.81%

ROE (Latest)

17.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.34% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.91 times

EPS(Q)

Highest at JPY 67.41

-16What is not working for the Company

ROCE(HY)

Lowest at 15.41%

INTEREST COVERAGE RATIO(Q)

Lowest at 9,539.51

DEBT-EQUITY RATIO (HY)

Highest at -6.94 %

INTEREST(Q)

Highest at JPY 243 MM

Here's what is working for TIS, Inc. (Japan)

EPS

Highest at JPY 67.41

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Highest at 4.91 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.34% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 4,833 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 TIS, Inc. (Japan)

Interest

At JPY 243 MM has Grown at 34.25%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 9,539.51

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 243 MM

in the last five periods and Increased by 34.25% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -6.94 %

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