Marubun Corp. (7537) 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

Tomen Devices Corp.

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Elematec Corp.

Satori Electric Co., Ltd.

Ryoden Corp.

Sanshin Electronics Co., Ltd.

TOYO Corp.

Marubun Corp.

Shinko Shoji Co., Ltd.

Why is Marubun Corp. ?

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

Poor long term growth as Net Sales has grown by an annual rate of -6.02% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 7.20% signifying low profitability per unit of shareholders funds

Healthy long term growth as Operating profit has grown by an annual rate 30.46%

The company declared positive results in Mar'25 after very negative results in Dec'24

OPERATING CASH FLOW(Y) Highest at JPY 30,149 MM
DEBT-EQUITY RATIO (HY) Lowest at 46.69 %
DEBTORS TURNOVER RATIO(HY) Highest at 3.32 times

With ROCE of 11.10%, it has a very attractive valuation with a 0.68 Enterprise value to Capital Employed

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 9.18%, its profits have risen by 13.8% ; the PEG ratio of the company is 0.5

Underperformed the market in the last 1 year

The stock has generated a return of 9.18% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Marubun Corp. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Marubun Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Marubun Corp.

9.18%

-0.30

32.67%

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)

-6.02%

EBIT Growth (5y)

30.46%

EBIT to Interest (avg)

6.16

Debt to EBITDA (avg)

5.22

Net Debt to Equity (avg)

0.48

Sales to Capital Employed (avg)

1.96

Tax Ratio

32.90%

Dividend Payout Ratio

40.42%

Pledged Shares

Institutional Holding

ROCE (avg)

9.26%

ROE (avg)

7.20%

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

0.53

EV to EBIT

6.12

EV to EBITDA

5.85

EV to Capital Employed

0.68

EV to Sales

0.26

PEG Ratio

0.47

Dividend Yield

ROCE (Latest)

11.10%

ROE (Latest)

8.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 30,149 MM

DEBT-EQUITY RATIO (HY)

Lowest at 46.69 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.32 times

-17What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY -300 MM has Fallen at -123.78%

NET SALES(Q)

At JPY 50,124 MM has Fallen at -6.72%

NET PROFIT(Q)

Lowest at JPY -495 MM

EPS(Q)

Lowest at JPY -18.82

Here's what is working for Marubun Corp.

Operating Cash Flow

Highest at JPY 30,149 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Debt-Equity Ratio

Lowest at 46.69 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.32 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 227 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 Marubun Corp.

Pre-Tax Profit

At JPY -300 MM has Fallen at -123.78%

over average net sales of the previous four periods of JPY 1,261.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -495 MM has Fallen at -163.54%

over average net sales of the previous four periods of JPY 779 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

At JPY 50,124 MM has Fallen at -6.72%

over average net sales of the previous four periods of JPY 53,737.75 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Profit

Lowest at JPY -495 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -18.82

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)