Mars Group Holdings Corp. (6419) 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

Bandai Namco Holdings, Inc.

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Yamaha Corp.

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Roland Corp.

GLOBERIDE, Inc.

Fujishoji Co., Ltd.

Mars Group Holdings Corp.

Tomy Co., Ltd.

Alpen Co., Ltd.

Snow Peak, Inc. (Japan)

Why is Mars Group Holdings Corp. ?

Poor Management Efficiency with a low ROE of 7.15%

The company has been able to generate a Return on Equity (avg) of 7.15% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 14.93% CAGR growth in Net Sales over the last 5 years

The company has been able to generate a Return on Equity (avg) of 7.15% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 14.93% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

NET PROFIT(HY) At JPY 2,381.06 MM has Grown at -31.67%
ROCE(HY) Lowest at 7.25%
NET SALES(Q) Lowest at JPY 6,794.74 MM

With ROE of 8.49%, it has a very attractive valuation with a 0.81 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 1.46%, its profits have fallen by -27.1%

Underperformed the market in the last 1 year

The stock has generated a return of 1.46% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mars Group Holdings Corp. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

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

Is Mars Group Holdings Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mars Group Holdings Corp.

2.1%

-0.95

18.33%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.93%

EBIT Growth (5y)

41.09%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.47

Sales to Capital Employed (avg)

0.49

Tax Ratio

32.62%

Dividend Payout Ratio

41.68%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

18.86%

ROE (avg)

7.15%

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

0.81

EV to EBIT

3.31

EV to EBITDA

3.10

EV to Capital Employed

0.65

EV to Sales

0.91

PEG Ratio

Dividend Yield

ROCE (Latest)

19.67%

ROE (Latest)

8.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.8% (YoY

CASH AND EQV(HY)

Highest at JPY 76,586.26 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 7.36 times

-15What is not working for the Company

NET PROFIT(HY)

At JPY 2,381.06 MM has Grown at -31.67%

ROCE(HY)

Lowest at 7.25%

NET SALES(Q)

Lowest at JPY 6,794.74 MM

OPERATING PROFIT(Q)

Lowest at JPY 1,694.74 MM

PRE-TAX PROFIT(Q)

At JPY 1,825.68 MM has Fallen at -26.06%

Here's what is working for Mars Group Holdings Corp.

Cash and Eqv

Highest at JPY 76,586.26 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 7.36 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -2.8% (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 164.97 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 Mars Group Holdings Corp.

Net Sales

At JPY 6,794.74 MM has Fallen at -15.81%

over average net sales of the previous four periods of JPY 8,070.29 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Net Profit

At JPY 2,381.06 MM has Grown at -31.67%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 6,794.74 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 1,694.74 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Pre-Tax Profit

At JPY 1,825.68 MM has Fallen at -26.06%

over average net sales of the previous four periods of JPY 2,469.14 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Non Operating Income

Highest at JPY 0.16 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income