U-NEXT HOLDINGS Co., Ltd. (9418) 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

SoftBank Group Corp.

U-NEXT HOLDINGS Co., Ltd.

Benefit Japan Co., Ltd.

Fibergate, Inc.

AI CROSS, Inc.

IPS Inc. /Japan/

Techfirm Holdings, Inc.

Accrete, Inc.

Kanda Tsushinki Co., Ltd.

JTOWER, Inc.

Giga Prize Co., Ltd.

Why is U-NEXT HOLDINGS Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 24.38%

Healthy long term growth as Net Sales has grown by an annual rate of 14.01% and Operating profit at 24.25%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 33.94

Flat results in May 25

INTEREST(HY) At JPY 410 MM has Grown at 61.42%
OPERATING CASH FLOW(Y) Lowest at JPY 0 MM
ROCE(HY) Lowest at 18.44%

With ROCE of 27.49%, it has a attractive valuation with a 3.87 Enterprise value to Capital Employed

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 11.68%, its profits have risen by 6%

Underperformed the market in the last 1 year

The stock has generated a return of 11.68% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to U-NEXT HOLDINGS Co., Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is U-NEXT HOLDINGS Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

U-NEXT HOLDINGS Co., Ltd.

12.75%

0.73

28.41%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.01%

EBIT Growth (5y)

24.25%

EBIT to Interest (avg)

34.99

Debt to EBITDA (avg)

1.00

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

2.24

Tax Ratio

39.72%

Dividend Payout Ratio

12.92%

Pledged Shares

Institutional Holding

ROCE (avg)

25.57%

ROE (avg)

22.58%

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

4.52

EV to EBIT

14.06

EV to EBITDA

10.34

EV to Capital Employed

3.87

EV to Sales

1.18

PEG Ratio

Dividend Yield

ROCE (Latest)

27.49%

ROE (Latest)

19.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

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

NET SALES(HY)

At JPY 191,510 MM has Grown at 18.35%

CASH AND EQV(HY)

Highest at JPY 108,461 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 20.37%

-20What is not working for the Company

INTEREST(HY)

At JPY 410 MM has Grown at 61.42%

OPERATING CASH FLOW(Y)

Lowest at JPY 0 MM

ROCE(HY)

Lowest at 18.44%

INTEREST COVERAGE RATIO(Q)

Lowest at 4,838.46

RAW MATERIAL COST(Y)

Grown by 7.03% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.96%

Here's what is working for U-NEXT HOLDINGS Co., Ltd.

Net Sales

Highest at JPY 96,656 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 108,461 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 20.37%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at JPY 3,094 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 U-NEXT HOLDINGS Co., Ltd.

Operating Cash Flow

Lowest at JPY 0 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Interest

At JPY 221 MM has Grown at 16.93%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 4,838.46

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 221 MM

in the last five periods and Increased by 16.93% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 9.96%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 7.03% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales