MarkLines Co., Ltd. (3901) 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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MarkLines Co., Ltd.

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Alpha Systems, Inc.

NSW, Inc. (Japan)

Fixstars Corp.

Why is MarkLines Co., Ltd. ?

High Management Efficiency with a high ROE of 25.87%

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

Healthy long term growth as Net Sales has grown by an annual rate of 17.55% and Operating profit at 19.11%

With ROE of 24.29%, it has a very attractive valuation with a 4.39 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 -37.61%, its profits have risen by 5.6% ; the PEG ratio of the company is 3.3

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to MarkLines Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is MarkLines Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

MarkLines Co., Ltd.

-37.61%

-1.41

33.84%

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)

17.55%

EBIT Growth (5y)

19.11%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.88

Sales to Capital Employed (avg)

0.88

Tax Ratio

28.80%

Dividend Payout Ratio

40.22%

Pledged Shares

Institutional Holding

ROCE (avg)

335.34%

ROE (avg)

25.87%

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

4.39

EV to EBIT

10.35

EV to EBITDA

10.04

EV to Capital Employed

29.51

EV to Sales

4.03

PEG Ratio

3.29

Dividend Yield

ROCE (Latest)

284.95%

ROE (Latest)

24.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

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

6What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 154.67%

DIVIDEND PER SHARE(HY)

Highest at JPY 16.53

RAW MATERIAL COST(Y)

Fallen by -6.53% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 41.71 %

-6What is not working for the Company

ROCE(HY)

Lowest at 23.11%

DEBT-EQUITY RATIO (HY)

Highest at 0 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 21.68 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 16.53 times

NET SALES(Q)

Fallen at -10.37%

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

Dividend per share

Highest at JPY 16.53 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 154.67% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Operating Profit Margin

Highest at 41.71 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -6.53% (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 28.04 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 MarkLines Co., Ltd.

Net Sales

Fallen at -10.37%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Debt-Equity Ratio

Highest at 0 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 21.68 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 16.53 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio