M3, Inc. (2413) 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

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M3, Inc.

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LITALICO, Inc. (7366)

NEXON Co., Ltd.

Why is M3, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 16.61%

Healthy long term growth as Net Sales has grown by an annual rate of 16.82% and Operating profit at 12.36%
Company has very low debt and has enough cash to service the debt requirements

The company has declared Negative results for the last 9 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at JPY 0 MM
INTEREST(Q) At JPY 290 MM has Grown at inf%
RAW MATERIAL COST(Y) Grown by 6.24% (YoY)

With ROE of 11.72%, it has a expensive valuation with a 3.91 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 -7.70%, its profits have fallen by -8.7%

Majority shareholders : Non Institution

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.70% 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 M3, 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 M3, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

M3, Inc.

-7.7%

137.41

49.38%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.82%

EBIT Growth (5y)

12.36%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

0.70

Tax Ratio

32.91%

Dividend Payout Ratio

35.22%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

45.08%

ROE (avg)

16.61%

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

3.91

EV to EBIT

22.28

EV to EBITDA

18.58

EV to Capital Employed

5.11

EV to Sales

4.80

PEG Ratio

Dividend Yield

ROCE (Latest)

22.92%

ROE (Latest)

11.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

10What is working for the Company

NET SALES(Q)

Highest at JPY 93,510 MM

OPERATING PROFIT(Q)

Highest at JPY 25,868 MM

PRE-TAX PROFIT(Q)

Highest at JPY 27,313 MM

NET PROFIT(Q)

Highest at JPY 18,938 MM

EPS(Q)

Highest at JPY 27.93

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 0 MM

INTEREST(Q)

At JPY 290 MM has Grown at inf%

RAW MATERIAL COST(Y)

Grown by 6.24% (YoY

Here's what is working for M3, Inc.

Net Sales

Highest at JPY 93,510 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 25,868 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 27,313 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 18,938 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 27.93

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Depreciation

Highest at JPY 4,387 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 M3, Inc.

Operating Cash Flow

Lowest at JPY 0 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Interest

At JPY 290 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 6.24% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales