DMG MORI CO., LTD. (6141) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Miura Co., Ltd.

Horiba Ltd.

SCREEN Holdings Co. Ltd.

AMADA Co., Ltd.

Nabtesco Corp.

THK CO., LTD.

NOK Corp.

Sumitomo Heavy Industries, Ltd.

IHI Corp.

DMG MORI CO., LTD.

Harmonic Drive Systems, Inc.

Why is DMG MORI CO., LTD. ?

High Management Efficiency with a high ROCE of 10.52%

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 2.91% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 2.91% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

PRE-TAX PROFIT(Q) At JPY 2,896 MM has Fallen at -72.15%
NET PROFIT(Q) At JPY 1,893 MM has Fallen at -73.77%
ROCE(HY) Lowest at 5.13%

With ROCE of 8.93%, it has a very attractive valuation with a 1.62 Enterprise value to Capital Employed

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 3.84%, its profits have fallen by -49%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 3.84% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to DMG MORI CO., LTD. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

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

Is DMG MORI CO., LTD. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

DMG MORI CO., LTD.

3.84%

-0.75

52.61%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.91%

EBIT Growth (5y)

2.86%

EBIT to Interest (avg)

5.72

Debt to EBITDA (avg)

3.36

Net Debt to Equity (avg)

1.01

Sales to Capital Employed (avg)

1.31

Tax Ratio

40.18%

Dividend Payout Ratio

229.36%

Pledged Shares

Institutional Holding

1.42%

ROCE (avg)

10.52%

ROE (avg)

13.01%

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

2.24

EV to EBIT

18.10

EV to EBITDA

9.39

EV to Capital Employed

1.62

EV to Sales

1.21

PEG Ratio

Dividend Yield

0.03%

ROCE (Latest)

8.93%

ROE (Latest)

8.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

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

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 374.46%

RAW MATERIAL COST(Y)

Fallen by -3.62% (YoY

-30What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 2,896 MM has Fallen at -72.15%

NET PROFIT(Q)

At JPY 1,893 MM has Fallen at -73.77%

ROCE(HY)

Lowest at 5.13%

INTEREST(Q)

At JPY 1,995 MM has Grown at 15.05%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.08%

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.54%

NET SALES(Q)

Lowest at JPY 113,477 MM

Here's what is working for DMG MORI CO., LTD.

Dividend Payout Ratio

Highest at 374.46%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -3.62% (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 DMG MORI CO., LTD.

Pre-Tax Profit

At JPY 2,896 MM has Fallen at -72.15%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,893 MM has Fallen at -73.77%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

At JPY 113,477 MM has Fallen at -13.29%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest

At JPY 1,995 MM has Grown at 15.05%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 113,477 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Inventory Turnover Ratio

Lowest at 1.08%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 7.54%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio