Marudai Food Co., Ltd. (2288) 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

Marudai Food Co., Ltd.

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Morinaga Milk Industry Co., Ltd.

Why is Marudai Food Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.35%

The company has been able to generate a Return on Capital Employed (avg) of 2.35% signifying low profitability per unit of total capital (equity and debt)

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 5.10

Poor long term growth as Net Sales has grown by an annual rate of 0.01% and Operating profit at 90.95% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 5.10
The company has been able to generate a Return on Equity (avg) of 3.30% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 0.01% and Operating profit at 90.95% over the last 5 years

Positive results in Jun 26

NET PROFIT(HY) At JPY 5,768.77 MM has Grown at 193.46%
ROCE(HY) Highest at 13.3%
CASH AND EQV(HY) Highest at JPY 18,172 MM

With ROE of 7.86%, it has a very attractive valuation with a 0.78 Price to Book Value

Over the past year, while the stock has generated a return of 10.50%, its profits have fallen by -14.4%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Marudai Food Co., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Marudai Food Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Marudai Food Co., Ltd.

-100.0%

1.11

23.03%

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)

0.01%

EBIT Growth (5y)

90.95%

EBIT to Interest (avg)

10.92

Debt to EBITDA (avg)

0.96

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

2.74

Tax Ratio

24.69%

Dividend Payout Ratio

17.51%

Pledged Shares

Institutional Holding

ROCE (avg)

4.34%

ROE (avg)

3.30%

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

0.78

EV to EBIT

9.28

EV to EBITDA

5.56

EV to Capital Employed

0.81

EV to Sales

0.28

PEG Ratio

Dividend Yield

ROCE (Latest)

8.69%

ROE (Latest)

7.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

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

11What is working for the Company

NET PROFIT(HY)

At JPY 5,768.77 MM has Grown at 193.46%

ROCE(HY)

Highest at 13.3%

CASH AND EQV(HY)

Highest at JPY 18,172 MM

DEBT-EQUITY RATIO (HY)

Lowest at 8.77 %

DEBTORS TURNOVER RATIO(HY)

Highest at 8.83 times

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 6,255 MM

INTEREST(9M)

At JPY 197 MM has Grown at 5.91%

RAW MATERIAL COST(Y)

Grown by 5.37% (YoY

PRE-TAX PROFIT(Q)

Lowest at JPY 1,411 MM

NET PROFIT(Q)

Lowest at JPY 1,017 MM

EPS(Q)

Lowest at JPY 42.12

Here's what is working for Marudai Food Co., Ltd.

Cash and Eqv

Highest at JPY 18,172 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 8.77 %

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 8.83 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Interest

At JPY 197 MM has Grown at 5.91%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Cash Flow

Lowest at JPY 6,255 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Pre-Tax Profit

Lowest at JPY 1,411 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 1,017 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 42.12

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 5.37% (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