WITZ Corp. (4440) 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

YMIRLlink, Inc.

Datasection, Inc.

WITZ Corp.

moi Corp.

Nihon Enterprise Co., Ltd.

Excite Holdings Co., Ltd.

System Location Co., Ltd.

Kushim, Inc. (Japan)

Aplix Corp.

coly, Inc.

Vector Holdings, Inc.

Why is WITZ Corp. ?

High Management Efficiency with a high ROE of 10.08%

Company has very low debt and has enough cash to service the debt requirements

Flat results in Feb 26

INVENTORY TURNOVER RATIO(HY) Lowest at 11.18 times
NET SALES(Q) At JPY 1,201.89 MM has Fallen at -7.92%
PRE-TAX PROFIT(Q) At JPY 120.47 MM has Fallen at -31.02%

With ROE of 17.64%, it has a attractive valuation with a 2.25 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 -11.88%, its profits have risen by 64.2% ; the PEG ratio of the company is 0.2

Below par performance in long term as well as near term

Along with generating -11.88% 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 WITZ Corp. 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 WITZ Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

WITZ Corp.

-11.88%

0.74

55.16%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.76%

EBIT Growth (5y)

15.82%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.74

Sales to Capital Employed (avg)

1.51

Tax Ratio

22.57%

Dividend Payout Ratio

14.09%

Pledged Shares

Institutional Holding

ROCE (avg)

626.41%

ROE (avg)

10.08%

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

2.25

EV to EBIT

6.21

EV to EBITDA

5.41

EV to Capital Employed

7.21

EV to Sales

0.81

PEG Ratio

0.20

Dividend Yield

ROCE (Latest)

116.17%

ROE (Latest)

17.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly 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

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -11.55% (YoY

CASH AND EQV(HY)

Highest at JPY 4,681.29 MM

DEBT-EQUITY RATIO (HY)

Lowest at -77.23 %

-6What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 11.18 times

NET SALES(Q)

At JPY 1,201.89 MM has Fallen at -7.92%

PRE-TAX PROFIT(Q)

At JPY 120.47 MM has Fallen at -31.02%

NET PROFIT(Q)

Lowest at JPY 84.05 MM

EPS(Q)

Lowest at JPY 21.02

Here's what is working for WITZ Corp.

Cash and Eqv

Highest at JPY 4,681.29 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -77.23 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -11.55% (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 WITZ Corp.

Net Sales

At JPY 1,201.89 MM has Fallen at -7.92%

over average net sales of the previous four periods of JPY 1,305.22 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 120.47 MM has Fallen at -31.02%

over average net sales of the previous four periods of JPY 174.66 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 84.05 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

At JPY 84.05 MM has Fallen at -34.27%

over average net sales of the previous four periods of JPY 127.89 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 21.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 11.18 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at JPY 0.1 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income