Vario Secure, Inc. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

C&G Systems Inc. (Japan)

Jorudan Co., Ltd.

YRGLM, Inc.

Vario Secure, Inc.

CommSeed Corp.

Encourage Technologies Co., Ltd.

Succeed Co., Ltd. (Tokyo)

Ecomott, Inc.

HOUSEI, Inc.

Welby, Inc.

enish, Inc.

Why is Vario Secure, Inc. ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.10 times

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(Q) At JPY 4.12 MM has Grown at 12.98%
DEBTORS TURNOVER RATIO(HY) Lowest at 5.65%

With ROCE of 7.80%, it has a expensive valuation with a 0.66 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 35.43%, its profits have fallen by -1.5%

Market Beating Performance

The stock has generated a return of 35.43% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 25.16%

Real-Time Research Report

Verdict Report

How 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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Vario Secure, Inc.

35.43%

0.35

48.23%

Japan Nikkei 225

25.16%

0.98

25.78%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.20%

EBIT Growth (5y)

-8.48%

EBIT to Interest (avg)

24.15

Debt to EBITDA (avg)

1.13

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.38

Tax Ratio

27.72%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

10.32%

ROE (avg)

8.64%

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

0.63

EV to EBIT

8.41

EV to EBITDA

5.96

EV to Capital Employed

0.66

EV to Sales

1.54

PEG Ratio

Dividend Yield

ROCE (Latest)

7.80%

ROE (Latest)

5.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

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

8What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 5.56 %

INVENTORY TURNOVER RATIO(HY)

Highest at 7.26%

NET SALES(Q)

Highest at JPY 706.3 MM

OPERATING PROFIT(Q)

Highest at JPY 202 MM

PRE-TAX PROFIT(Q)

Highest at JPY 148.63 MM

NET PROFIT(Q)

Highest at JPY 105.25 MM

EPS(Q)

Highest at JPY 23.2

-5What is not working for the Company

INTEREST(Q)

At JPY 4.12 MM has Grown at 12.98%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.65%

Here's what is working for Vario Secure, Inc.

Debt-Equity Ratio

Lowest at 5.56 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Net Sales

Highest at JPY 706.3 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 202 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 148.63 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 105.25 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 23.2

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 7.26%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Vario Secure, Inc.

Interest

At JPY 4.12 MM has Grown at 12.98%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 5.65%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio