Car Mate MFG Co., Ltd. (7297) 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

SERENDIP Holdings Co. Ltd.

NITTAN Corp.

Nihon Plast Co., Ltd.

Muro Corp.

Tokyo Radiator Manufacturing Co., Ltd.

Univance Corp.

Car Mate MFG Co., Ltd.

Aska Corp.

Diamond Electric Holdings Co., Ltd.

FUJI OOZX, Inc.

Tanaka Seimitsu Kogyo Co., Ltd.

Why is Car Mate MFG Co., Ltd. ?

Poor Management Efficiency with a low ROE of 3.94%

The company has been able to generate a Return on Equity (avg) of 3.94% signifying low profitability per unit of shareholders funds

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

Poor long term growth as Net Sales has grown by an annual rate of -0.54% and Operating profit at -12.59% over the last 5 years

Positive results in Mar 26

PRE-TAX PROFIT(Q) At JPY 257.07 MM has Grown at 314%
NET PROFIT(Q) At JPY 250.69 MM has Grown at 417.25%
DIVIDEND PAYOUT RATIO(Y) Highest at 215.33%

With ROE of 2.48%, it has a risky valuation with a 0.49 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 -0.59%, its profits have risen by 123.6% ; the PEG ratio of the company is 0.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.59% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Car Mate MFG Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Car Mate MFG Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Car Mate MFG Co., Ltd.

-0.59%

-0.61

18.28%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.54%

EBIT Growth (5y)

-12.59%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.62

Sales to Capital Employed (avg)

0.96

Tax Ratio

58.75%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

15.49%

ROE (avg)

3.94%

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

0.49

EV to EBIT

-2.57

EV to EBITDA

-1.94

EV to Capital Employed

-0.17

EV to Sales

-0.08

PEG Ratio

0.16

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

2.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

22What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 257.07 MM has Grown at 314%

NET PROFIT(Q)

At JPY 250.69 MM has Grown at 417.25%

DIVIDEND PAYOUT RATIO(Y)

Highest at 215.33%

RAW MATERIAL COST(Y)

Fallen by -5.19% (YoY

CASH AND EQV(HY)

Highest at JPY 20,852.51 MM

DEBT-EQUITY RATIO (HY)

Lowest at -64.72 %

DEBTORS TURNOVER RATIO(HY)

Highest at 8.21 times

-3What is not working for the Company

INTEREST(Q)

Highest at JPY 3.57 MM

Here's what is working for Car Mate MFG Co., Ltd.

Pre-Tax Profit

At JPY 257.07 MM has Grown at 314%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 250.69 MM has Grown at 417.25%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 20,852.51 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -64.72 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 8.21 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 215.33%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -5.19% (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 Car Mate MFG Co., Ltd.

Interest

At JPY 3.57 MM has Grown at 83.88%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 3.57 MM

in the last five periods and Increased by 83.88% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Non Operating Income

Highest at JPY 4.49 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income