Tokai Soft Co. Ltd. (4430) 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

ibis, Inc.

Axis Co., Ltd. (Tokyo)

Dawn Corp.

CRI Middleware Co., Ltd.

SMN Corp.

Showa System Engineering Corp.

Tokai Soft Co. Ltd.

Sinops, Inc.

Ficha, Inc.

Nippon Ichi Software, Inc.

Nulab, Inc. (Japan)

Why is Tokai Soft Co. Ltd. ?

High Management Efficiency with a high ROE of 12.39%

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

Healthy long term growth as Operating profit has grown by an annual rate 21.12%

Flat results in Feb 26

INTEREST(HY) At JPY 10.08 MM has Grown at 23.99%
ROCE(HY) Lowest at 14.4%

With ROE of 14.26%, it has a very attractive valuation with a 1.41 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 2.50%, its profits have risen by 11.6% ; the PEG ratio of the company is 0.9

Underperformed the market in the last 1 year

The stock has generated a return of 2.50% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 88.41%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tokai Soft Co. Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Tokai Soft Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tokai Soft Co. Ltd.

-100.0%

1.24

20.29%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.50%

EBIT Growth (5y)

21.12%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.30

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

1.34

Tax Ratio

29.10%

Dividend Payout Ratio

32.32%

Pledged Shares

Institutional Holding

ROCE (avg)

17.11%

ROE (avg)

12.39%

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

1.41

EV to EBIT

7.34

EV to EBITDA

6.11

EV to Capital Employed

1.39

EV to Sales

0.77

PEG Ratio

0.85

Dividend Yield

ROCE (Latest)

18.88%

ROE (Latest)

14.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

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

8What is working for the Company

NET SALES(9M)

At JPY 9,203.33 MM has Grown at 20.26%

INTEREST COVERAGE RATIO(Q)

Highest at 9,688.34

RAW MATERIAL COST(Y)

Fallen by 1.71% (YoY

OPERATING PROFIT(Q)

Highest at JPY 476.18 MM

OPERATING PROFIT MARGIN(Q)

Highest at 15.73 %

PRE-TAX PROFIT(Q)

Highest at JPY 402.37 MM

-10What is not working for the Company

INTEREST(HY)

At JPY 10.08 MM has Grown at 23.99%

ROCE(HY)

Lowest at 14.4%

Here's what is working for Tokai Soft Co. Ltd.

Interest Coverage Ratio

Highest at 9,688.34

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

At JPY 9,203.33 MM has Grown at 20.26%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 476.18 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 15.73 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 402.37 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by 1.71% (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

Here's what is not working for Tokai Soft Co. Ltd.

Interest

At JPY 10.08 MM has Grown at 23.99%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)