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.

YE Digital Corp.

Focus Systems Corp.

ISB Corp.

Uluru Co., Ltd.

Scala, Inc. (Japan)

J-Stream, Inc.

Tecnos Japan Inc.

Why is YE Digital Corp. ?

High Management Efficiency with a high ROE of 14.50%

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

Healthy long term growth as Operating profit has grown by an annual rate 15.55%

Flat results in Feb 26

DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
DEBTORS TURNOVER RATIO(HY) Lowest at 3.47 times
DIVIDEND PER SHARE(HY) Lowest at JPY 3.47

With ROE of 16.72%, it has a very attractive valuation with a 1.92 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 46.74%, its profits have risen by 34.7% ; the PEG ratio of the company is 0.3

Underperformed the market in the last 1 year

The stock has generated a return of 46.74% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 88.41%

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

YE Digital Corp.

46.74%

0.79

40.33%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.64%

EBIT Growth (5y)

15.55%

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)

2.90

Tax Ratio

30.48%

Dividend Payout Ratio

28.00%

Pledged Shares

Institutional Holding

ROCE (avg)

92.60%

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

1.92

EV to EBIT

6.42

EV to EBITDA

5.53

EV to Capital Employed

2.77

EV to Sales

0.54

PEG Ratio

0.33

Dividend Yield

ROCE (Latest)

43.14%

ROE (Latest)

16.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Mildly Bullish

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

4What is working for the Company

NET PROFIT(HY)

At JPY 832.49 MM has Grown at 77.89%

RAW MATERIAL COST(Y)

Fallen by -2.18% (YoY

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.47 times

DIVIDEND PER SHARE(HY)

Lowest at JPY 3.47

Here's what is working for YE Digital Corp.

Net Profit

At JPY 832.49 MM has Grown at 77.89%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -2.18% (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 84.17 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.

Debtors Turnover Ratio

Lowest at 3.47 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at JPY 3.47

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (JPY)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Non Operating Income

Highest at JPY 0.18 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income