Writeup Co., Ltd. (6580) 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

Writeup Co., Ltd.

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Why is Writeup Co., Ltd. ?

High Management Efficiency with a high ROE of 14.85%

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

Healthy long term growth as Net Sales has grown by an annual rate of 16.68%

With a growth in Net Profit of 316.39%, the company declared Very Positive results in Dec 25

The company has declared positive results for the last 3 consecutive quarters
NET PROFIT(Q) At JPY 248.56 MM has Grown at 312.49%
ROCE(HY) Highest at 25.75%
PRE-TAX PROFIT(Q) At JPY 367.76 MM has Grown at 129.86%

With ROE of 15.56%, it has a attractive valuation with a 3.28 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 12.07%, its profits have risen by 110.6% ; the PEG ratio of the company is 0.2

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Writeup Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Writeup Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Writeup Co., Ltd.

12.07%

1.09

73.56%

Japan Nikkei 225

36.73%

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)

16.68%

EBIT Growth (5y)

22.85%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.87

Sales to Capital Employed (avg)

1.15

Tax Ratio

32.98%

Dividend Payout Ratio

19.10%

Pledged Shares

Institutional Holding

ROCE (avg)

2,229.03%

ROE (avg)

14.85%

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

3.28

EV to EBIT

10.43

EV to EBITDA

9.73

EV to Capital Employed

18.83

EV to Sales

1.88

PEG Ratio

0.19

Dividend Yield

ROCE (Latest)

180.55%

ROE (Latest)

15.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

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

17What is working for the Company

NET PROFIT(Q)

At JPY 248.56 MM has Grown at 312.49%

ROCE(HY)

Highest at 25.75%

PRE-TAX PROFIT(Q)

At JPY 367.76 MM has Grown at 129.86%

RAW MATERIAL COST(Y)

Fallen by -8.54% (YoY

CASH AND EQV(HY)

Highest at JPY 5,395.69 MM

-2What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -79.46 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.38 times

Here's what is working for Writeup Co., Ltd.

Net Profit

At JPY 248.56 MM has Grown at 312.49%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 367.76 MM has Grown at 129.86%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Cash and Eqv

Highest at JPY 5,395.69 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -8.54% (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 15.62 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 Writeup Co., Ltd.

Debt-Equity Ratio

Highest at -79.46 %

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

Debtors Turnover Ratio

Lowest at 7.38 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio