Why is XNET Corp. ?
1
Flat results in Jun 26
- RAW MATERIAL COST(Y) Grown by 5.62% (YoY)
- CASH AND EQV(HY) Lowest at JPY 2,298.68 MM
- PRE-TAX PROFIT(Q) Lowest at JPY 213.26 MM
2
With ROE of 17.79%, it has a very attractive valuation with a 4.19 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 37.42%, its profits have fallen by -8.5%
3
Underperformed the market in the last 1 year
- The stock has generated a return of 37.42% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%
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 Computers - Software & Consulting)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is XNET Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
XNET Corp.
37.42%
0.80
32.64%
Japan Nikkei 225
59.79%
2.03
29.50%
Quality key factors
Factor
Value
Sales Growth (5y)
2.65%
EBIT Growth (5y)
6.44%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0.10
Net Debt to Equity (avg)
0.25
Sales to Capital Employed (avg)
1.02
Tax Ratio
37.98%
Dividend Payout Ratio
36.57%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
25.60%
ROE (avg)
10.98%
Valuation Key Factors 
Factor
Value
P/E Ratio
24
Industry P/E
Price to Book Value
4.19
EV to EBIT
13.69
EV to EBITDA
8.03
EV to Capital Employed
3.89
EV to Sales
2.39
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
28.43%
ROE (Latest)
17.79%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Movement
3What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at 2.76 %
DEBTORS TURNOVER RATIO(HY)
Highest at 14.86 times
-3What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 5.62% (YoY
CASH AND EQV(HY)
Lowest at JPY 2,298.68 MM
PRE-TAX PROFIT(Q)
Lowest at JPY 213.26 MM
Here's what is working for XNET Corp.
Debt-Equity Ratio
Lowest at 2.76 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 14.86 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for XNET Corp.
Pre-Tax Profit
Lowest at JPY 213.26 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Cash and Eqv
Lowest at JPY 2,298.68 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Raw Material Cost
Grown by 5.62% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






