ScoreWhy is Vario Secure, Inc. ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.28 times
2
Flat results in Feb 26
- INTEREST(HY) At JPY 8.51 MM has Grown at 16.43%
3
With ROCE of 8.61%, it has a very attractive valuation with a 0.54 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 -15.36%, its profits have risen by 16.5% ; the PEG ratio of the company is 0.5
4
Below par performance in long term as well as near term
- Along with generating -15.36% 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 ReportHow much should you hold?
- Overall Portfolio exposure to Vario Secure, 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 Vario Secure, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Vario Secure, Inc.
-16.05%
0.03
33.90%
Japan Nikkei 225
81.96%
2.98
27.54%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.81%
EBIT Growth (5y)
-6.90%
EBIT to Interest (avg)
24.15
Debt to EBITDA (avg)
1.13
Net Debt to Equity (avg)
0.04
Sales to Capital Employed (avg)
0.39
Tax Ratio
27.72%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.32%
ROE (avg)
8.51%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
0.54
EV to EBIT
6.29
EV to EBITDA
4.56
EV to Capital Employed
0.54
EV to Sales
1.22
PEG Ratio
0.54
Dividend Yield
NA
ROCE (Latest)
8.61%
ROE (Latest)
6.02%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 615.03 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 1.66 %
RAW MATERIAL COST(Y)
Fallen by -9.74% (YoY
NET SALES(Q)
Highest at JPY 724.35 MM
-7What is not working for the Company
INTEREST(HY)
At JPY 8.51 MM has Grown at 16.43%
Here's what is working for Vario Secure, Inc.
Debt-Equity Ratio
Lowest at 1.66 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Operating Cash Flow
Highest at JPY 615.03 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Net Sales
Highest at JPY 724.35 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Raw Material Cost
Fallen by -9.74% (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 Vario Secure, Inc.
Interest
At JPY 8.51 MM has Grown at 16.43%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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