TRADE WORKS Co., Ltd. (Chiyoda-Ku) (3997) 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

Succeed Co., Ltd. (Tokyo)

TRADE WORKS Co., Ltd. (Chiyoda-Ku)

Vario Secure, Inc.

Encourage Technologies Co., Ltd.

Fuva Brain Ltd.

Amazia, Inc.

Temona, Inc.

Showcase, Inc. (Japan)

Innovation, Inc.

Internetworking & Broadband Consulting Co., Ltd.

WonderPlanet, Inc.

Why is TRADE WORKS Co., Ltd. (Chiyoda-Ku) ?

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

Poor long term growth as Operating profit has grown by an annual rate -219.36% of over the last 5 years

With a growth in Net Sales of 1.06%, the company declared Very Positive results in Dec 25

NET PROFIT(HY) Higher at JPY 131.72 MM
ROCE(HY) Highest at 3.72%
PRE-TAX PROFIT(Q) At JPY 141.29 MM has Grown at 182.01%

With ROE of -8.71%, it has a risky valuation with a 2.69 Price to Book Value

Over the past year, while the stock has generated a return of 194.91%, its profits have fallen by -135.9%

Market Beating Performance

The stock has generated a return of 194.91% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to TRADE WORKS Co., Ltd. (Chiyoda-Ku) 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 TRADE WORKS Co., Ltd. (Chiyoda-Ku) for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

TRADE WORKS Co., Ltd. (Chiyoda-Ku)

194.91%

-0.37

134.91%

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)

16.92%

EBIT Growth (5y)

-219.36%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

2.03

Tax Ratio

83.22%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

21.98%

ROE (avg)

7.68%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.69

EV to EBIT

-55.24

EV to EBITDA

50.67

EV to Capital Employed

2.67

EV to Sales

1.01

PEG Ratio

Dividend Yield

ROCE (Latest)

-4.84%

ROE (Latest)

-8.71%

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

Mildly Bullish

OBV

No Trend

Bullish

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

23What is working for the Company

NET PROFIT(HY)

Higher at JPY 131.72 MM

ROCE(HY)

Highest at 3.72%

PRE-TAX PROFIT(Q)

At JPY 141.29 MM has Grown at 182.01%

DIVIDEND PAYOUT RATIO(Y)

Highest at 2,339.18%

RAW MATERIAL COST(Y)

Fallen by -31.43% (YoY

CASH AND EQV(HY)

Highest at JPY 1,869.75 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 14.28 times

NET SALES(Q)

Highest at JPY 1,509.2 MM

-13What is not working for the Company

NET PROFIT(Q)

At JPY 8.91 MM has Fallen at -49.55%

INTEREST(Q)

Highest at JPY 3.84 MM

Here's what is working for TRADE WORKS Co., Ltd. (Chiyoda-Ku)

Pre-Tax Profit

At JPY 141.29 MM has Grown at 182.01%

over average net sales of the previous four periods of JPY 50.1 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Sales

Highest at JPY 1,509.2 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 1,509.2 MM has Grown at 21.64%

over average net sales of the previous four periods of JPY 1,240.74 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 1,869.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 14.28 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 2,339.18%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -31.43% (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 69.25 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 TRADE WORKS Co., Ltd. (Chiyoda-Ku)

Interest

At JPY 3.84 MM has Grown at 33.76%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 8.91 MM has Fallen at -49.55%

over average net sales of the previous four periods of JPY 17.67 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

Highest at JPY 3.84 MM

in the last five periods and Increased by 33.76% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)