Why is XNET Corp. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Flat results in Jun 25
- INTEREST(HY) At JPY 13.42 MM has Grown at 210.07%
3
With ROE of 19.90%, it has a very attractive valuation with a 3.88 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 -5.69%, its profits have fallen by -21.6%
4
Below par performance in long term as well as near term
- Along with generating -5.69% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to XNET Corp. 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 XNET Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
XNET Corp.
-5.69%
-0.32
19.69%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
2.56%
EBIT Growth (5y)
5.04%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0.10
Net Debt to Equity (avg)
0.25
Sales to Capital Employed (avg)
0.85
Tax Ratio
31.54%
Dividend Payout Ratio
34.95%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
21.84%
ROE (avg)
10.98%
Valuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
3.88
EV to EBIT
13.28
EV to EBITDA
11.80
EV to Capital Employed
3.29
EV to Sales
2.28
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
24.82%
ROE (Latest)
19.90%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Sideways
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bullish
Technical Movement
5What is working for the Company
ROCE(HY)
Highest at 22.32%
RAW MATERIAL COST(Y)
Fallen by -10.87% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 14.32%
NET SALES(Q)
Highest at JPY 1,352.11 MM
-8What is not working for the Company
INTEREST(HY)
At JPY 13.42 MM has Grown at 210.07%
Here's what is working for XNET Corp.
Net Sales
Highest at JPY 1,352.11 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Debtors Turnover Ratio
Highest at 14.32%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -10.87% (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 XNET Corp.
Interest
At JPY 13.42 MM has Grown at 210.07%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






