YE Digital Corp. (2354) 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

Flect Co., Ltd.

YE Digital Corp.

Ad-Sol Nissin Corp.

Startia Holdings, Inc.

ISB Corp.

NEOJAPAN, Inc.

Focus Systems Corp.

Uluru Co., Ltd.

Scala, Inc. (Japan)

J-Stream, Inc.

Tecnos Japan Inc.

Why is YE Digital Corp. ?

Strong Long Term Fundamental Strength with a 19.15% CAGR growth in Operating Profits

Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 44.08% signifying high profitability per unit of total capital (equity and debt)

With a growth in Net Profit of 90.14%, the company declared Very Positive results in Nov 25

RAW MATERIAL COST(Y) Fallen by -40.91% (YoY)
NET SALES(Q) Highest at JPY 5,316.16 MM
OPERATING PROFIT(Q) Highest at JPY 666.88 MM

With ROE of 14.27%, it has a very attractive valuation with a 1.64 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 20.50%, its profits have fallen by -7.6%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to YE Digital 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 YE Digital Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

YE Digital Corp.

-100.0%

0.21

35.74%

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)

7.65%

EBIT Growth (5y)

19.15%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

2.99

Tax Ratio

30.48%

Dividend Payout Ratio

35.18%

Pledged Shares

Institutional Holding

ROCE (avg)

92.60%

ROE (avg)

13.55%

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

1.64

EV to EBIT

6.18

EV to EBITDA

5.17

EV to Capital Employed

2.15

EV to Sales

0.44

PEG Ratio

Dividend Yield

ROCE (Latest)

34.87%

ROE (Latest)

14.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

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

9What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -40.91% (YoY

NET SALES(Q)

Highest at JPY 5,316.16 MM

OPERATING PROFIT(Q)

Highest at JPY 666.88 MM

OPERATING PROFIT MARGIN(Q)

Highest at 12.54 %

PRE-TAX PROFIT(Q)

Highest at JPY 620.12 MM

NET PROFIT(Q)

Highest at JPY 424.42 MM

EPS(Q)

Highest at JPY 22.3

-2What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -48.19 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.94 times

Here's what is working for YE Digital Corp.

Net Sales

Highest at JPY 5,316.16 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 666.88 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 12.54 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 620.12 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 620.12 MM has Grown at 83.59%

over average net sales of the previous four periods of JPY 337.78 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 424.42 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 424.42 MM has Grown at 87.82%

over average net sales of the previous four periods of JPY 225.97 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 22.3

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -40.91% (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 YE Digital Corp.

Debt-Equity Ratio

Highest at -48.19 %

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 3.94 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio