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

Axis Co., Ltd. (Tokyo)

ibis, Inc.

Tokai Soft Co. Ltd.

SMN Corp.

Sinops, Inc.

Showa System Engineering Corp.

Dawn Corp.

Nippon Ichi Software, Inc.

Nulab, Inc. (Japan)

CRI Middleware Co., Ltd.

Ficha, Inc.

Why is Tokai Soft Co. Ltd. ?

High Management Efficiency with a high ROE of 12.56%

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 17.06%

Positive results in Nov 25

INVENTORY TURNOVER RATIO(HY) Highest at 318.51 times
NET SALES(Q) Highest at JPY 3,259.05 MM
OPERATING PROFIT(Q) Highest at JPY 461.17 MM

With ROE of 14.33%, it has a very attractive valuation with a 1.31 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 13.43%, its profits have risen by 18.2% ; the PEG ratio of the company is 0.5

Underperformed the market in the last 1 year

The stock has generated a return of 13.43% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

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, Medium Return

Absolute

Risk Adjusted

Volatility

Tokai Soft Co. Ltd.

13.43%

1.50

25.32%

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)

7.60%

EBIT Growth (5y)

17.06%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.30

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

1.32

Tax Ratio

29.10%

Dividend Payout Ratio

32.32%

Pledged Shares

Institutional Holding

ROCE (avg)

17.11%

ROE (avg)

12.56%

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

1.31

EV to EBIT

7.51

EV to EBITDA

6.74

EV to Capital Employed

1.26

EV to Sales

0.89

PEG Ratio

0.50

Dividend Yield

ROCE (Latest)

16.74%

ROE (Latest)

14.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

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

12What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 318.51 times

NET SALES(Q)

Highest at JPY 3,259.05 MM

OPERATING PROFIT(Q)

Highest at JPY 461.17 MM

PRE-TAX PROFIT(Q)

Highest at JPY 391.45 MM

NET PROFIT(Q)

Highest at JPY 249.41 MM

EPS(Q)

Highest at JPY 52.06

-9What is not working for the Company

INTEREST(HY)

At JPY 10.89 MM has Grown at 352.1%

DEBT-EQUITY RATIO (HY)

Highest at 5.74 %

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

Inventory Turnover Ratio

Highest at 318.51 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

Highest at JPY 3,259.05 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 3,259.05 MM has Grown at 14.66%

over average net sales of the previous four periods of JPY 2,842.29 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 461.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 391.45 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 249.41 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 52.06

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

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

Interest

At JPY 10.89 MM has Grown at 352.1%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 5.74 %

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