MarketEnterprise Co., Ltd. (3135) 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

Kurashicom, Inc.

Jade Group, Inc.

Raccoon Holdings, Inc.

Syuppin Co., Ltd.

Senshukai Co., Ltd.

Mandarake, Inc.

RenetJapanGroup, Inc.

Hamee Corp.

BEENOS, Inc.

MarketEnterprise Co., Ltd.

PATH Corp.

Why is MarketEnterprise Co., Ltd. ?

Weak Long Term Fundamental Strength with a 1.79% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 1.79% of over the last 5 years

The company has declared negative results in Jan 70 after 2 consecutive negative quarters

INTEREST(HY) At JPY 18.07 MM has Grown at 22.85%
PRE-TAX PROFIT(Q) At JPY -39.51 MM has Fallen at -138.26%
RAW MATERIAL COST(Y) Grown by 8.68% (YoY)

With ROE of 37.82%, it has a attractive valuation with a 7.56 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 -29.87%, its profits have risen by 187.6% ; the PEG ratio of the company is 0.1

Below par performance in long term as well as near term

Along with generating -29.87% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in E-Retail/ E-Commerce)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is MarketEnterprise Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

MarketEnterprise Co., Ltd.

-29.87%

0.35

49.95%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.82%

EBIT Growth (5y)

1.79%

EBIT to Interest (avg)

7.53

Debt to EBITDA (avg)

2.58

Net Debt to Equity (avg)

0.85

Sales to Capital Employed (avg)

6.27

Tax Ratio

27.21%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

13.72%

ROE (avg)

14.05%

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

7.56

EV to EBIT

14.62

EV to EBITDA

13.08

EV to Capital Employed

4.54

EV to Sales

0.41

PEG Ratio

0.11

Dividend Yield

ROCE (Latest)

31.06%

ROE (Latest)

37.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 25.08 times

-25What is not working for the Company

INTEREST(HY)

At JPY 18.07 MM has Grown at 22.85%

PRE-TAX PROFIT(Q)

At JPY -39.51 MM has Fallen at -138.26%

RAW MATERIAL COST(Y)

Grown by 8.68% (YoY

NET PROFIT(Q)

Lowest at JPY -108.37 MM

EPS(Q)

Lowest at JPY -20.24

Here's what is working for MarketEnterprise Co., Ltd.

Inventory Turnover Ratio

Highest at 25.08 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for MarketEnterprise Co., Ltd.

Interest

At JPY 18.07 MM has Grown at 22.85%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY -39.51 MM has Fallen at -138.26%

over average net sales of the previous four periods of JPY 103.26 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -108.37 MM has Fallen at -252.52%

over average net sales of the previous four periods of JPY 71.05 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Profit

Lowest at JPY -108.37 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -20.24

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 8.68% (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