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

Startia Holdings, Inc.

Flect Co., Ltd.

Ad-Sol Nissin Corp.

NEOJAPAN, Inc.

Uluru Co., Ltd.

Focus Systems Corp.

YE Digital Corp.

ISB Corp.

J-Stream, Inc.

Scala, Inc. (Japan)

Tecnos Japan Inc.

Why is YE Digital Corp. ?

Flat results in May 26

PRE-TAX PROFIT(Q) Lowest at JPY 313.74 MM
NET PROFIT(Q) Lowest at JPY 163.62 MM
EPS(Q) Lowest at JPY 8.49

With ROE of 15.90%, it has a fair valuation with a 2.02 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 92.07%, its profits have risen by 24.9% ; the PEG ratio of the company is 0.5

Market Beating performance in long term as well as near term

Along with generating 92.07% returns in the last 1 year, the stock has outperformed 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 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?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

YE Digital Corp.

92.07%

1.12

70.42%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.95%

EBIT Growth (5y)

12.05%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.50

Sales to Capital Employed (avg)

2.80

Tax Ratio

29.59%

Dividend Payout Ratio

28.00%

Pledged Shares

Institutional Holding

ROCE (avg)

65.54%

ROE (avg)

14.50%

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

2.02

EV to EBIT

7.98

EV to EBITDA

6.80

EV to Capital Employed

2.76

EV to Sales

0.64

PEG Ratio

0.51

Dividend Yield

ROCE (Latest)

34.59%

ROE (Latest)

15.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -7.5% (YoY

NET PROFIT(9M)

Higher at JPY 996.11 MM

CASH AND EQV(HY)

Highest at JPY 8,240.86 MM

-6What is not working for the Company

PRE-TAX PROFIT(Q)

Lowest at JPY 313.74 MM

NET PROFIT(Q)

Lowest at JPY 163.62 MM

EPS(Q)

Lowest at JPY 8.49

Here's what is working for YE Digital Corp.

Cash and Eqv

Highest at JPY 8,240.86 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -7.5% (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 87.98 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 YE Digital Corp.

Net Profit

At JPY 163.62 MM has Fallen at -48.4%

over average net sales of the previous four periods of JPY 317.1 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 313.74 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 313.74 MM has Fallen at -30.06%

over average net sales of the previous four periods of JPY 448.6 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 163.62 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 8.49

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)