Welby, Inc. (4438) 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

Genetec Corp.

PBsystems, Inc.

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Sumasapo, Inc.

Nippon RAD Inc.

CYND Co., Ltd.

TENDA Co., Ltd.

Jedat Inc.

CyberStep, Inc.

Welby, Inc.

Why is Welby, Inc. ?

Poor Management Efficiency with a low ROE of 0.16%

The company has been able to generate a Return on Equity (avg) of 0.16% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -8.08% and Operating profit at -279.29% over the last 5 years

The company has declared Negative results for the last 8 consecutive quarters

INTEREST(HY) At JPY 1.32 MM has Grown at 118.21%
CASH AND EQV(HY) Lowest at JPY 1,234.2 MM
DEBT-EQUITY RATIO (HY) Highest at -58.88 %

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -17.63%, its profits have fallen by -58.1%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -17.63% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Welby, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Welby, Inc.

-20.23%

-0.76

68.78%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.08%

EBIT Growth (5y)

-279.29%

EBIT to Interest (avg)

-217.29

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.72

Sales to Capital Employed (avg)

0.64

Tax Ratio

0.35%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.16%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

4.66

EV to EBIT

-3.73

EV to EBITDA

-3.85

EV to Capital Employed

13.97

EV to Sales

4.70

PEG Ratio

Dividend Yield

ROCE (Latest)

-374.92%

ROE (Latest)

-106.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

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

19What is working for the Company

NET SALES(Q)

At JPY 167.24 MM has Grown at 102.91%

RAW MATERIAL COST(Y)

Fallen by -4.3% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 7.7%

OPERATING PROFIT(Q)

Highest at JPY -82.66 MM

PRE-TAX PROFIT(Q)

Highest at JPY -89.11 MM

NET PROFIT(Q)

Highest at JPY -90.41 MM

EPS(Q)

Highest at JPY -9.17

-11What is not working for the Company

INTEREST(HY)

At JPY 1.32 MM has Grown at 118.21%

CASH AND EQV(HY)

Lowest at JPY 1,234.2 MM

DEBT-EQUITY RATIO (HY)

Highest at -58.88 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 14.52%

Here's what is working for Welby, Inc.

Net Sales

At JPY 167.24 MM has Grown at 102.91%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY -82.66 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 -89.11 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 -90.41 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY -9.17

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Highest at 7.7%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -4.3% (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 Welby, Inc.

Interest

At JPY 1.32 MM has Grown at 118.21%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 1,234.2 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -58.88 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 14.52%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio