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 22.84% and Operating profit at 23.98%

With a growth in Net Profit of 40.79%, the company declared Outstanding results in Dec 25

The company has declared positive results for the last 25 consecutive quarters
ROCE(HY) Highest at 19.02%
NET SALES(Q) Highest at JPY 1,313.11 MM
NET PROFIT(Q) Highest at JPY 452.93 MM

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 -14.61%, its profits have risen by 9.2% ; the PEG ratio of the company is 2.6

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.

-14.61%

-0.78

36.75%

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)

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

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

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

ROCE (Latest)

536.86%

ROE (Latest)

15.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

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

16What is working for the Company

ROCE(HY)

Highest at 19.02%

NET SALES(Q)

Highest at JPY 1,313.11 MM

NET PROFIT(Q)

Highest at JPY 452.93 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 33.05%

RAW MATERIAL COST(Y)

Fallen by -0.78% (YoY

CASH AND EQV(HY)

Highest at JPY 17,945.03 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 17.42

PRE-TAX PROFIT(Q)

Highest at JPY 659.25 MM

EPS(Q)

Highest at JPY 30.22

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 1,313.11 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 452.93 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)

Pre-Tax Profit

Highest at JPY 659.25 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

EPS

Highest at JPY 30.22

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 17,945.03 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 17.42

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 33.05%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -0.78% (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 17.99 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)