Trend Micro, Inc. (4704) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

RAKUS Co., Ltd.

Capcom Co., Ltd.

NSD Co., Ltd.

KONAMI Group Corp.

Trend Micro, Inc.

OBIC Business Consultants Co., Ltd.

Koei Tecmo Holdings Co., Ltd.

Oracle Corp Japan

Square Enix Holdings Co., Ltd.

Money Forward, Inc.

Sega Sammy Holdings, Inc.

Why is Trend Micro, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 18.52%

Healthy long term growth as Net Sales has grown by an annual rate of 10.31%
Company has very low debt and has enough cash to service the debt requirements

The company has declared Positive results for the last 3 consecutive quarters

ROCE(HY) Highest at 28.9%
RAW MATERIAL COST(Y) Fallen by -0.89% (YoY)
NET PROFIT(9M) Higher at JPY 22,386.42 MM

With ROE of 31.50%, it has a very attractive valuation with a 15.04 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 -21.47%, its profits have risen by 80.6% ; the PEG ratio of the company is 0.6

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Trend Micro, Inc. 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 Trend Micro, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Trend Micro, Inc.

-21.47%

397.38

35.78%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.31%

EBIT Growth (5y)

5.78%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-1.90

Sales to Capital Employed (avg)

1.92

Tax Ratio

37.02%

Dividend Payout Ratio

71.03%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

ROE (avg)

18.52%

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

15.04

EV to EBIT

26.59

EV to EBITDA

17.12

EV to Capital Employed

-14.56

EV to Sales

4.94

PEG Ratio

0.59

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

31.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

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

8What is working for the Company

ROCE(HY)

Highest at 28.9%

RAW MATERIAL COST(Y)

Fallen by -0.89% (YoY

NET PROFIT(9M)

Higher at JPY 22,386.42 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 5.15%

-6What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.57%

NET SALES(Q)

Lowest at JPY 66,408 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 9,066 MM

NET PROFIT(Q)

Lowest at JPY 5,478 MM

EPS(Q)

Lowest at JPY 41.31

Here's what is working for Trend Micro, Inc.

Debtors Turnover Ratio

Highest at 5.15%

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 -0.89% (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 Trend Micro, Inc.

Inventory Turnover Ratio

Lowest at 6.57% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at JPY 66,408 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

Lowest at JPY 9,066 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 5,478 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 41.31

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)