Toho System Science Co., Ltd. (4333) 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

User Local, Inc.

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Toho System Science Co., Ltd.

Japan System Techniques Co., Ltd.

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Access Co., Ltd.

I-NET Corp.

Saison Technology Co., Ltd.

Quantum Solutions Co., Ltd.

Why is Toho System Science Co., Ltd. ?

High Management Efficiency with a high ROE of 11.85%

Company has very low debt and has enough cash to service the debt requirements

Flat results in Dec 25

DEBT-EQUITY RATIO (HY) Highest at -99.16 %
DEBTORS TURNOVER RATIO(HY) Lowest at 8 times
OPERATING PROFIT(Q) Lowest at JPY 402.62 MM

With ROE of 13.52%, it has a very attractive valuation with a 2.87 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 -11.39%, its profits have risen by 10.2% ; the PEG ratio of the company is 2.1

Below par performance in long term as well as near term

Along with generating -11.39% 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 Toho System Science Co., Ltd. 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 Toho System Science Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Toho System Science Co., Ltd.

-11.39%

-0.88

24.73%

Japan Nikkei 225

41.2%

1.45

28.34%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.22%

EBIT Growth (5y)

12.62%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-1.04

Sales to Capital Employed (avg)

1.82

Tax Ratio

26.57%

Dividend Payout Ratio

68.86%

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

11.85%

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

2.87

EV to EBIT

9.72

EV to EBITDA

9.48

EV to Capital Employed

-46.68

EV to Sales

0.93

PEG Ratio

2.07

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

13.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -20.83% (YoY

NET SALES(Q)

Highest at JPY 4,712.54 MM

-8What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -99.16 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 8 times

OPERATING PROFIT(Q)

Lowest at JPY 402.62 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.54 %

PRE-TAX PROFIT(Q)

Lowest at JPY 379.55 MM

NET PROFIT(Q)

Lowest at JPY 262.74 MM

EPS(Q)

Lowest at JPY 15.16

Here's what is working for Toho System Science Co., Ltd.

Net Sales

Highest at JPY 4,712.54 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Raw Material Cost

Fallen by -20.83% (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 25.27 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 Toho System Science Co., Ltd.

Operating Profit

Lowest at JPY 402.62 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 8.54 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 379.55 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 262.74 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 15.16

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at -99.16 %

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

Debtors Turnover Ratio

Lowest at 8 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio