Macnica Holdings, Inc. (3132) 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

Sumitomo Corp.

Inabata & Co., Ltd.

Inaba Denkisangyo Co., Ltd.

Macnica Holdings, Inc.

Nagase & Co., Ltd.

Hanwa Co., Ltd.

MonotaRO Co., Ltd.

Iwatani Corp.

Workman Co., Ltd.

Mitsubishi Corp.

Daiichikosho Co., Ltd.

Why is Macnica Holdings, Inc. ?

Strong Long Term Fundamental Strength with a 22.38% CAGR growth in Operating Profits

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 51.75
The company has been able to generate a Return on Capital Employed (avg) of 17.46% signifying high profitability per unit of total capital (equity and debt)

With ROE of 10.68%, it has a very attractive valuation with a 1.31 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 37.67%, its profits have fallen by -42.3%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Macnica Holdings, Inc. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Macnica Holdings, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Macnica Holdings, Inc.

37.67%

0.24

34.42%

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)

14.69%

EBIT Growth (5y)

22.38%

EBIT to Interest (avg)

51.75

Debt to EBITDA (avg)

0.82

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

3.43

Tax Ratio

28.43%

Dividend Payout Ratio

49.67%

Pledged Shares

Institutional Holding

ROCE (avg)

17.46%

ROE (avg)

15.05%

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

1.31

EV to EBIT

8.99

EV to EBITDA

8.19

EV to Capital Employed

1.28

EV to Sales

0.34

PEG Ratio

Dividend Yield

ROCE (Latest)

14.20%

ROE (Latest)

10.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

2What is working for the Company

CASH AND EQV(HY)

Highest at JPY 97,702 MM

NET SALES(Q)

Highest at JPY 281,613 MM

-23What is not working for the Company

INTEREST(HY)

At JPY 1,058 MM has Grown at 50.71%

OPERATING CASH FLOW(Y)

Lowest at JPY 31,676 MM

NET PROFIT(HY)

At JPY 8,264.83 MM has Grown at -55.79%

ROCE(HY)

Lowest at 8.88%

RAW MATERIAL COST(Y)

Grown by 20.07% (YoY

PRE-TAX PROFIT(Q)

Lowest at JPY 5,214 MM

Here's what is working for Macnica Holdings, Inc.

Net Sales

Highest at JPY 281,613 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 97,702 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 1,133 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 Macnica Holdings, Inc.

Interest

At JPY 1,058 MM has Grown at 50.71%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 8,264.83 MM has Grown at -55.79%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Cash Flow

Lowest at JPY 31,676 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)

Pre-Tax Profit

At JPY 5,214 MM has Fallen at -44.9%

over average net sales of the previous four periods of JPY 9,463 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 5,214 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Raw Material Cost

Grown by 20.07% (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