Marubeni Construction Material Lease Co. Ltd. (9763) 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

Ichinen Holdings Co. Ltd.

Koyou Rentia Co., Ltd.

Takamiya Co., Ltd.

Gecoss Corp.

Kyushu Leasing Service Co., Ltd.

CTS Co., Ltd.

Nippon Care Supply Co., Ltd.

Japan Investment Adviser Co., Ltd.

Marubeni Construction Material Lease Co. Ltd.

Asax Co., Ltd.

SBI ARUHI Corp.

Why is Marubeni Construction Material Lease Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 5.66%

The company has been able to generate a Return on Capital Employed (avg) of 5.66% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 1.30% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 7.03% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 1.30% over the last 5 years

Negative results in Jun 26

INVENTORY TURNOVER RATIO(HY) Lowest at 1.59 times
DEBT-EQUITY RATIO (HY) Highest at 60.63 %
INTEREST(Q) Highest at JPY 31 MM

With ROE of 6.88%, it has a very attractive valuation with a 0.69 Price to Book Value

Over the past year, while the stock has generated a return of 14.72%, its profits have risen by 5% ; the PEG ratio of the company is 2.1

Underperformed the market in the last 1 year

The stock has generated a return of 14.72% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 61.01%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Marubeni Construction Material Lease Co. Ltd. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

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

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

Is Marubeni Construction Material Lease Co. Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Marubeni Construction Material Lease Co. Ltd.

14.44%

-0.78

76.24%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.30%

EBIT Growth (5y)

17.72%

EBIT to Interest (avg)

34.14

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

29.27%

Dividend Payout Ratio

37.33%

Pledged Shares

Institutional Holding

ROCE (avg)

6.03%

ROE (avg)

7.03%

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

0.69

EV to EBIT

12.98

EV to EBITDA

11.62

EV to Capital Employed

0.78

EV to Sales

0.86

PEG Ratio

2.10

Dividend Yield

ROCE (Latest)

6.04%

ROE (Latest)

6.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -16.75% (YoY

OPERATING PROFIT(Q)

Highest at JPY 650 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.94 %

-14What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.59 times

DEBT-EQUITY RATIO (HY)

Highest at 60.63 %

INTEREST(Q)

Highest at JPY 31 MM

Here's what is working for Marubeni Construction Material Lease Co. Ltd.

Operating Profit

Highest at JPY 650 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 9.94 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -16.75% (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

Here's what is not working for Marubeni Construction Material Lease Co. Ltd.

Interest

At JPY 31 MM has Grown at 14.81%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 1.59 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at JPY 31 MM

in the last five periods and Increased by 14.81% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 60.63 %

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