Maezawa Industries, Inc. (6489) 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

Sansei Technologies, Inc.

Technoflex Corp.

Marumae Co., Ltd.

Mimaki Engineering Co., Ltd.

Y.A.C. HOLDINGS CO., LTD.

Maezawa Industries, Inc.

Nitto Seiko Co., Ltd.

Futaba Corp.

Yamashin-Filter Corp.

Yushin Precision Equipment Co., Ltd.

Nissei Plastic Industrial Co., Ltd.

Why is Maezawa Industries, Inc. ?

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

Healthy long term growth as Operating profit has grown by an annual rate 33.20%

Negative results in May 25

NET SALES(Q) At JPY 11,116 MM has Fallen at -14.74%
INTEREST(Q) Highest at JPY 12 MM
PRE-TAX PROFIT(Q) Fallen at -41.63%

With ROE of 13.20%, it has a very attractive valuation with a 1.10 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 69.91%, its profits have risen by 37.1% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.1

Consistent Returns over the last 3 years

Along with generating 69.91% returns in the last 1 year, the stock has outperformed 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 Maezawa Industries, Inc. 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 Maezawa Industries, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Maezawa Industries, Inc.

69.91%

1.38

31.66%

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)

5.95%

EBIT Growth (5y)

33.20%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

1.21

Tax Ratio

32.82%

Dividend Payout Ratio

27.53%

Pledged Shares

Institutional Holding

ROCE (avg)

23.11%

ROE (avg)

11.61%

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

1.10

EV to EBIT

5.78

EV to EBITDA

5.16

EV to Capital Employed

1.10

EV to Sales

0.80

PEG Ratio

0.22

Dividend Yield

0.07%

ROCE (Latest)

19.09%

ROE (Latest)

13.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

DIVIDEND PAYOUT RATIO(Y)

Highest at 64.64%

RAW MATERIAL COST(Y)

Fallen by -2.31% (YoY

CASH AND EQV(HY)

Highest at JPY 19,875 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 4.05%

DIVIDEND PER SHARE(HY)

Highest at JPY 3.5

-15What is not working for the Company

NET SALES(Q)

At JPY 11,116 MM has Fallen at -14.74%

INTEREST(Q)

Highest at JPY 12 MM

PRE-TAX PROFIT(Q)

Fallen at -41.63%

NET PROFIT(Q)

Fallen at -48.32%

Here's what is working for Maezawa Industries, Inc.

Cash and Eqv

Highest at JPY 19,875 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 4.05%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 3.5

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 64.64%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -2.31% (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

Depreciation

Highest at JPY 199 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 Maezawa Industries, Inc.

Net Sales

At JPY 11,116 MM has Fallen at -14.74%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest

At JPY 12 MM has Grown at 71.43%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 12 MM

in the last five periods and Increased by 71.43% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Fallen at -41.63%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Fallen at -48.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)