Mainichi Comnet Co., Ltd. (8908) 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

Ascot Corp.

Tenpo Innovation Co., Ltd.

Akatsuki Corp.

Global Link Management, Inc.

Japan Property Management Center Co., Ltd.

FaithNetwork Co., Ltd.

Star Mica Holdings Co., Ltd.

B-Lot Co. Ltd.

Mainichi Comnet Co., Ltd.

Robot Home, Inc.

&Do Holdings Co., Ltd.

Why is Mainichi Comnet Co., Ltd. ?

High Management Efficiency with a high ROCE of 11.86%

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 2.42% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 2.42% of over the last 5 years

Flat results in May 25

DIVIDEND PAYOUT RATIO(Y) Lowest at 32.29%
RAW MATERIAL COST(Y) Grown by 7.13% (YoY)
DEBTORS TURNOVER RATIO(HY) Lowest at 46%

With ROE of 12.53%, it has a very attractive valuation with a 1.13 Price to Book Value

Over the past year, while the stock has generated a return of 13.61%, its profits have risen by 7% ; the PEG ratio of the company is 1.2

Underperformed the market in the last 1 year

The stock has generated a return of 13.61% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mainichi Comnet Co., Ltd. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

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

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

Is Mainichi Comnet Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mainichi Comnet Co., Ltd.

13.61%

0.50

17.10%

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)

3.60%

EBIT Growth (5y)

2.42%

EBIT to Interest (avg)

15.42

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

32.37%

Dividend Payout Ratio

35.26%

Pledged Shares

Institutional Holding

ROCE (avg)

11.98%

ROE (avg)

12.43%

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

1.13

EV to EBIT

8.91

EV to EBITDA

6.73

EV to Capital Employed

1.08

EV to Sales

0.98

PEG Ratio

1.21

Dividend Yield

ROCE (Latest)

12.11%

ROE (Latest)

12.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

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

29What is working for the Company

CASH AND EQV(HY)

Highest at JPY 14,900.47 MM

DEBT-EQUITY RATIO (HY)

Lowest at 36.83 %

DIVIDEND PER SHARE(HY)

Highest at JPY 46

NET SALES(Q)

Highest at JPY 8,169.6 MM

OPERATING PROFIT(Q)

Highest at JPY 2,154.89 MM

OPERATING PROFIT MARGIN(Q)

Highest at 26.38 %

PRE-TAX PROFIT(Q)

Highest at JPY 1,875.36 MM

NET PROFIT(Q)

Highest at JPY 1,248.38 MM

EPS(Q)

Highest at JPY 71.22

-14What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 32.29%

RAW MATERIAL COST(Y)

Grown by 7.13% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 46%

INTEREST(Q)

Highest at JPY 92.13 MM

Here's what is working for Mainichi Comnet Co., Ltd.

Net Sales

At JPY 8,169.6 MM has Grown at 61.13%

over average net sales of the previous four periods of JPY 5,070.14 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 1,875.36 MM has Grown at 296.92%

over average net sales of the previous four periods of JPY 472.48 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,248.38 MM has Grown at 289.3%

over average net sales of the previous four periods of JPY 320.67 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 8,169.6 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 2,154.89 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 26.38 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 1,875.36 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 1,248.38 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 71.22

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 14,900.47 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 36.83 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at JPY 46

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Depreciation

Highest at JPY 222.92 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 Mainichi Comnet Co., Ltd.

Interest

At JPY 92.13 MM has Grown at 173.29%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 92.13 MM

in the last five periods and Increased by 173.29% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 46%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 32.29%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 7.13% (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