Ubicom Holdings, Inc. (3937) 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

Temairazu, Inc.

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Cybertrust Japan Co. Ltd.

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Ubicom Holdings, Inc.

AI inside, Inc.

Yuke's Co., Ltd.

Neural Group, Inc.

T&S, Inc.

Why is Ubicom Holdings, Inc. ?

High Management Efficiency with a high ROE of 16.86%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 91.32

INTEREST(HY) At JPY 14.71 MM has Grown at 95.11%
DEBT-EQUITY RATIO (HY) Highest at -79.45 %
DEBTORS TURNOVER RATIO(HY) Lowest at 4.33 times

With ROE of 15.32%, it has a very attractive valuation with a 2.18 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 -31.76%, its profits have risen by 61.5% ; the PEG ratio of the company is 0.3

Below par performance in long term as well as near term

Along with generating -31.76% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ubicom Holdings, 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 Ubicom Holdings, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ubicom Holdings, Inc.

-31.76%

-0.68

35.92%

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)

9.44%

EBIT Growth (5y)

13.19%

EBIT to Interest (avg)

91.32

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.83

Sales to Capital Employed (avg)

1.16

Tax Ratio

36.17%

Dividend Payout Ratio

56.24%

Pledged Shares

Institutional Holding

ROCE (avg)

184.60%

ROE (avg)

16.86%

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

2.18

EV to EBIT

5.75

EV to EBITDA

5.00

EV to Capital Employed

7.81

EV to Sales

1.19

PEG Ratio

0.25

Dividend Yield

ROCE (Latest)

135.80%

ROE (Latest)

15.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.22% (YoY

CASH AND EQV(HY)

Highest at JPY 9,846.31 MM

-15What is not working for the Company

INTEREST(HY)

At JPY 14.71 MM has Grown at 95.11%

DEBT-EQUITY RATIO (HY)

Highest at -79.45 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.33 times

NET SALES(Q)

Lowest at JPY 1,445.12 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 300.85 MM

Here's what is working for Ubicom Holdings, Inc.

Cash and Eqv

Highest at JPY 9,846.31 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -0.22% (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 Ubicom Holdings, Inc.

Interest

At JPY 14.71 MM has Grown at 95.11%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -79.45 % and Grown

In each half year 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

Debtors Turnover Ratio

Lowest at 4.33 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at JPY 1,445.12 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Sales

Fallen at -9.83%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

Lowest at JPY 300.85 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)