ValueCommerce Co., Ltd. shares are sitting close to an important technical support area around 3005 JPY based on weekly price data. Against this backdrop, investors can use this good timing for new long positions.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company presents an interesting fundamental situation from a short-term investment perspective.
Strengths
● The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
● The company returns high margins, thereby supporting business profitability.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● The firm trades with high earnings multiples: 30.21 times its 2021 earnings per share.
● The company appears highly valued given the size of its balance sheet.
● The company is not the most generous with respect to shareholders' compensation.
● Over the past twelve months, analysts' opinions have been revised negatively.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.
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ValueCommerce Co Ltd is a Japan-based company engaged in the development of businesses that provide effective marketing solutions from attracting customers to retaining customers in order to maximize the performance of commerce businesses. The Company operates in two business segments. The Marketing Solution segment provides solutions centered on attracting customers to electronic commerce (EC) sites of commerce businesses. The main service is performance-based advertising affiliate. The EC Solution segment provides solutions centered on sales promotion on the EC site of commerce companies. The main services are the CRM tool Stores R8 for online mall stores and the pay-per-click advertisement Store Match.