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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

YRGLM, Inc.

C&G Systems Inc. (Japan)

CommSeed Corp.

Succeed Co., Ltd. (Tokyo)

Vario Secure, Inc.

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Jorudan Co., Ltd.

Ecomott, Inc.

Welby, Inc.

HOUSEI, 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(HY) At JPY 8.39 MM has Grown at 23.17%
INTEREST COVERAGE RATIO(Q) Lowest at 4,089.6
NET PROFIT(Q) Lowest at JPY 76.54 MM

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 -4.13%, its profits have fallen by -1.5%

Below par performance in long term as well as near term

Along with generating -4.13% 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 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Vario Secure, Inc.

-4.13%

0.28

40.98%

Japan Nikkei 225

38.94%

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)

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

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 517.31 MM

DEBT-EQUITY RATIO (HY)

Lowest at 2.76 %

INVENTORY TURNOVER RATIO(HY)

Highest at 7.99 times

RAW MATERIAL COST(Y)

Fallen by -2.76% (YoY

CASH AND EQV(HY)

Highest at JPY 1,718.85 MM

-11What is not working for the Company

INTEREST(HY)

At JPY 8.39 MM has Grown at 23.17%

INTEREST COVERAGE RATIO(Q)

Lowest at 4,089.6

NET PROFIT(Q)

Lowest at JPY 76.54 MM

EPS(Q)

Lowest at JPY 16.84

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

Debt-Equity Ratio

Lowest at 2.76 % 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

Inventory Turnover Ratio

Highest at 7.99 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Cash Flow

Highest at JPY 517.31 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Cash and Eqv

Highest at JPY 1,718.85 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -2.76% (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 8.39 MM has Grown at 23.17%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 4,089.6

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

Lowest at JPY 76.54 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 16.84

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)