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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Proto Corp.

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 16.76% and Operating profit at 5.66%
Company has very low debt and has enough cash to service the debt requirements

Flat results in Mar 26

INTEREST(HY) At JPY 549 MM has Grown at 193.58%
PRE-TAX PROFIT(Q) Lowest at JPY 11,390 MM
NET PROFIT(Q) Lowest at JPY 7,451 MM

With ROE of 12.97%, it has a expensive valuation with a 2.59 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 1.66%, its profits have risen by 19.6% ; the PEG ratio of the company is 1

Majority shareholders : Non Institution

Underperformed the market in the last 1 year

The stock has generated a return of 1.66% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 61.01%

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?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

M3, Inc.

-30.77%

172.13

45.62%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.76%

EBIT Growth (5y)

5.66%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

0.71

Tax Ratio

30.12%

Dividend Payout Ratio

30.33%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

37.27%

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

2.59

EV to EBIT

14.25

EV to EBITDA

11.48

EV to Capital Employed

3.09

EV to Sales

2.84

PEG Ratio

1.02

Dividend Yield

ROCE (Latest)

21.71%

ROE (Latest)

12.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

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

5What is working for the Company

NET SALES(9M)

At JPY 265,163 MM has Grown at 20.15%

DIVIDEND PAYOUT RATIO(Y)

Highest at 197.96%

CASH AND EQV(HY)

Highest at JPY 331,315 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 4.98

-7What is not working for the Company

INTEREST(HY)

At JPY 549 MM has Grown at 193.58%

PRE-TAX PROFIT(Q)

Lowest at JPY 11,390 MM

NET PROFIT(Q)

Lowest at JPY 7,451 MM

EPS(Q)

Lowest at JPY 11.11

Here's what is working for M3, Inc.

Net Sales

At JPY 265,163 MM has Grown at 20.15%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 331,315 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 4.98

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 197.96%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at JPY 4,404 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.

Interest

At JPY 549 MM has Grown at 193.58%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Lowest at JPY 11,390 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 7,451 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 11.11

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)