WingArc1st 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

CHANGE Holdings, Inc.

Cybozu, Inc.

Sansan, Inc.

WingArc1st Inc.

JustSystems Corp.

Infomart Corp.

MIXI, Inc.

Appier Group, Inc.

freee K.K.

DeNA Co., Ltd.

GREE, Inc.

Why is WingArc1st Inc. ?

High Management Efficiency with a high ROE of 13.13%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 49.72

Flat results in Nov 25

INTEREST(HY) At JPY 66.14 MM has Grown at 48.86%
ROCE(HY) Lowest at 13.18%
DEBTORS TURNOVER RATIO(HY) Lowest at 11.07 times

With ROE of 12.47%, it has a very attractive valuation with a 2.04 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 -30.51%, its profits have risen by 0.7% ; the PEG ratio of the company is 16.3

Below par performance in long term as well as near term

Along with generating -30.51% 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 WingArc1st 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 WingArc1st Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

WingArc1st Inc.

-30.51%

-0.06

30.88%

Japan Nikkei 225

69.82%

2.74

25.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.22%

EBIT Growth (5y)

13.66%

EBIT to Interest (avg)

49.72

Debt to EBITDA (avg)

0.45

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

0.54

Tax Ratio

29.20%

Dividend Payout Ratio

60.48%

Pledged Shares

Institutional Holding

ROCE (avg)

17.97%

ROE (avg)

13.13%

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

2.04

EV to EBIT

11.14

EV to EBITDA

9.07

EV to Capital Employed

2.15

EV to Sales

2.95

PEG Ratio

16.32

Dividend Yield

ROCE (Latest)

19.27%

ROE (Latest)

12.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bullish

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

10What is working for the Company

NET SALES(Q)

Highest at JPY 7,790.35 MM

INTEREST COVERAGE RATIO(Q)

Highest at 9,094.53

NET PROFIT(Q)

Highest at JPY 1,484.07 MM

RAW MATERIAL COST(Y)

Fallen by -1.32% (YoY

OPERATING PROFIT(Q)

Highest at JPY 2,561.75 MM

PRE-TAX PROFIT(Q)

Highest at JPY 2,085.65 MM

EPS(Q)

Highest at JPY 42.57

-11What is not working for the Company

INTEREST(HY)

At JPY 66.14 MM has Grown at 48.86%

ROCE(HY)

Lowest at 13.18%

DEBTORS TURNOVER RATIO(HY)

Lowest at 11.07 times

Here's what is working for WingArc1st Inc.

Net Sales

Highest at JPY 7,790.35 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Interest Coverage Ratio

Highest at 9,094.53

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

Highest at JPY 1,484.07 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)

Operating Profit

Highest at JPY 2,561.75 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 2,085.65 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 42.57

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -1.32% (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 461.93 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Here's what is not working for WingArc1st Inc.

Interest

At JPY 66.14 MM has Grown at 48.86%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 11.07 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio