Why is User Local, Inc. ?
1
High Management Efficiency with a high ROE of 14.71%
2
Company has very low debt and has enough cash to service the debt requirements
3
Healthy long term growth as Net Sales has grown by an annual rate of 22.84% and Operating profit at 23.98%
4
The company has declared Positive results for the last 25 consecutive quarters
- ROCE(HY) Highest at 17.41%
- DIVIDEND PER SHARE(HY) Highest at JPY 17.66
- NET SALES(Q) Highest at JPY 1,219.94 MM
5
With ROE of 15.95%, it has a attractive valuation with a 3.59 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 -3.11%, its profits have risen by 9.2% ; the PEG ratio of the company is 2.6
How much should you buy?
- Overall Portfolio exposure to User Local, Inc. should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is User Local, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
User Local, Inc.
-3.11%
-0.26
34.64%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
22.84%
EBIT Growth (5y)
23.98%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.96
Sales to Capital Employed (avg)
0.52
Tax Ratio
30.22%
Dividend Payout Ratio
15.74%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1,537.87%
ROE (avg)
14.71%
Valuation Key Factors 
Factor
Value
P/E Ratio
22
Industry P/E
Price to Book Value
3.58
EV to EBIT
11.51
EV to EBITDA
11.31
EV to Capital Employed
61.79
EV to Sales
4.99
PEG Ratio
2.55
Dividend Yield
NA
ROCE (Latest)
536.86%
ROE (Latest)
15.95%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
17What is working for the Company
ROCE(HY)
Highest at 17.41%
DIVIDEND PER SHARE(HY)
Highest at JPY 17.66
NET SALES(Q)
Highest at JPY 1,219.94 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 58.97%
RAW MATERIAL COST(Y)
Fallen by 1.81% (YoY
CASH AND EQV(HY)
Highest at JPY 16,538.8 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 17.66%
NET PROFIT(Q)
Highest at JPY 380.22 MM
EPS(Q)
Highest at JPY 23.68
-2What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 0 %
OPERATING PROFIT MARGIN(Q)
Lowest at 38.44 %
Here's what is working for User Local, Inc.
Net Sales
Highest at JPY 1,219.94 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Dividend per share
Highest at JPY 17.66 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Net Sales
At JPY 1,219.94 MM has Grown at 18.25%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Profit
Highest at JPY 380.22 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 23.68
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Cash and Eqv
Highest at JPY 16,538.8 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 17.66%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Dividend Payout Ratio
Highest at 58.97%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by 1.81% (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 17.68 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Depreciation
At JPY 17.68 MM has Grown at 52.65%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (JPY MM)
Here's what is not working for User Local, Inc.
Operating Profit Margin
Lowest at 38.44 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debt-Equity Ratio
Highest at 0 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






