User Local, Inc. (3984) 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

User Local, Inc.

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INES Corp.

Why is User Local, Inc. ?

High Management Efficiency with a high ROE of 14.71%

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

Healthy long term growth as Net Sales has grown by an annual rate of 21.67% and Operating profit at 22.96%

With a growth in Net Profit of 31.51%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 29 consecutive quarters
ROCE(HY) Highest at 19.77%
NET SALES(Q) Highest at JPY 1,353.81 MM
NET PROFIT(Q) Highest at JPY 469.7 MM

With ROE of 17.29%, it has a attractive valuation with a 2.67 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 0.28%, its profits have risen by 26.4% ; the PEG ratio of the company is 0.6

Real-Time Research Report

Verdict Report

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.

0.28%

-0.37

35.34%

Japan Nikkei 225

75.3%

2.67

28.18%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.67%

EBIT Growth (5y)

22.96%

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)

0.53

Tax Ratio

30.22%

Dividend Payout Ratio

15.74%

Pledged Shares

Institutional Holding

ROCE (avg)

1,537.87%

ROE (avg)

14.71%

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

2.67

EV to EBIT

7.20

EV to EBITDA

7.00

EV to Capital Employed

319.83

EV to Sales

3.17

PEG Ratio

0.59

Dividend Yield

ROCE (Latest)

4440.05%

ROE (Latest)

17.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

12What is working for the Company

ROCE(HY)

Highest at 19.77%

NET SALES(Q)

Highest at JPY 1,353.81 MM

NET PROFIT(Q)

Highest at JPY 469.7 MM

RAW MATERIAL COST(Y)

Fallen by -0.35% (YoY

CASH AND EQV(HY)

Highest at JPY 18,720.69 MM

DEBT-EQUITY RATIO (HY)

Lowest at -98.89 %

OPERATING PROFIT(Q)

Highest at JPY 690.63 MM

OPERATING PROFIT MARGIN(Q)

Highest at 51.01 %

PRE-TAX PROFIT(Q)

Highest at JPY 677.08 MM

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for User Local, Inc.

Net Sales

Highest at JPY 1,353.81 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Profit

Highest at JPY 469.7 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Profit

Highest at JPY 690.63 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 51.01 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 677.08 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Cash and Eqv

Highest at JPY 18,720.69 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -98.89 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -0.35% (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 18.95 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)