Zuken, Inc. (6947) 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

Systena Corp.

Future Corp.

I'LL Inc.

Zuken, Inc.

Simplex Holdings, Inc.

DTS Corp.

GMO Internet Group, Inc.

Fuji Soft, Inc.

NEC Networks & System Integration Corp.

Net One Systems Co., Ltd.

Infocom Corp.

Why is Zuken, Inc. ?

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

With a growth in Net Sales of 6.95%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
DIVIDEND PER SHARE(HY) Highest at JPY 5.62
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
DIVIDEND PAYOUT RATIO(Y) Highest at 164.92%

With ROE of 15.48%, it has a attractive valuation with a 2.55 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 -15.84%, its profits have risen by 48.8% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Zuken, Inc. 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 Zuken, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zuken, Inc.

-100.0%

0.63

24.03%

Japan Nikkei 225

81.96%

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)

8.21%

EBIT Growth (5y)

16.80%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.87

Sales to Capital Employed (avg)

1.00

Tax Ratio

29.37%

Dividend Payout Ratio

42.20%

Pledged Shares

Institutional Holding

2.00%

ROCE (avg)

78.09%

ROE (avg)

9.69%

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

2.55

EV to EBIT

11.61

EV to EBITDA

10.06

EV to Capital Employed

12.50

EV to Sales

1.57

PEG Ratio

0.34

Dividend Yield

ROCE (Latest)

107.69%

ROE (Latest)

15.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

10What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 5.62

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

DIVIDEND PAYOUT RATIO(Y)

Highest at 164.92%

RAW MATERIAL COST(Y)

Fallen by -0.61% (YoY

CASH AND EQV(HY)

Highest at JPY 70,094.8 MM

NET SALES(Q)

Highest at JPY 12,895.23 MM

OPERATING PROFIT(Q)

Highest at JPY 2,259.52 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.52 %

-1What is not working for the Company

PRE-TAX PROFIT(Q)

Fallen at -33.2%

Here's what is working for Zuken, Inc.

Dividend per share

Highest at JPY 5.62 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 12,895.23 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 2,259.52 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 17.52 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at JPY 70,094.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 164.92%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -0.61% (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 Zuken, Inc.

Pre-Tax Profit

Fallen at -33.2%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)