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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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

Maezawa Industries, Inc.

Yamashin-Filter Corp.

Futaba 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 17.89%

Flat results in Nov 25

INTEREST(HY) At JPY 10 MM has Grown at 25%
INVENTORY TURNOVER RATIO(HY) Lowest at 3.08 times

With ROE of 11.43%, it has a very attractive valuation with a 1.43 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 22.12%, its profits have fallen by -2.7%
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 22.12% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 70.84%

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, Low Return

Absolute

Risk Adjusted

Volatility

Maezawa Industries, Inc.

22.12%

0.84

29.44%

Japan Nikkei 225

70.84%

2.78

25.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.41%

EBIT Growth (5y)

17.89%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.37

Sales to Capital Employed (avg)

1.18

Tax Ratio

32.82%

Dividend Payout Ratio

27.53%

Pledged Shares

Institutional Holding

ROCE (avg)

23.11%

ROE (avg)

11.12%

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

1.43

EV to EBIT

7.49

EV to EBITDA

6.52

EV to Capital Employed

1.51

EV to Sales

1.00

PEG Ratio

Dividend Yield

0.05%

ROCE (Latest)

20.20%

ROE (Latest)

11.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -18.01% (YoY

CASH AND EQV(HY)

Highest at JPY 17,522 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 3.47

PRE-TAX PROFIT(Q)

At JPY 1,052 MM has Grown at 77.4%

NET PROFIT(Q)

At JPY 702 MM has Grown at 84.74%

-9What is not working for the Company

INTEREST(HY)

At JPY 10 MM has Grown at 25%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.08 times

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

Pre-Tax Profit

At JPY 1,052 MM has Grown at 77.4%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 702 MM has Grown at 84.74%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 17,522 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 3.47

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -18.01% (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 222 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 222 MM has Grown at 33.73%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Maezawa Industries, Inc.

Interest

At JPY 10 MM has Grown at 25%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 3.08 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio