MARUWA CO., LTD. (5344) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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NGK Insulators, Ltd.

Mitsubishi Electric Corp.

Sumitomo Electric Industries Ltd.

Fuji Electric Co., Ltd.

TOKYO OHKA KOGYO CO., LTD.

NIDEC Corp.

MARUWA CO., LTD.

GS Yuasa Corp.

Tokai Carbon Co., Ltd.

Why is MARUWA CO., LTD. ?

Strong Long Term Fundamental Strength with a 23.56% CAGR growth in Operating Profits

Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 41.71% signifying high profitability per unit of total capital (equity and debt)

The company has declared Positive results for the last 5 consecutive quarters

RAW MATERIAL COST(Y) Fallen by 0.41% (YoY)
CASH AND EQV(HY) Highest at JPY 141,478 MM
DEBTORS TURNOVER RATIO(HY) Highest at 5%

With ROE of 14.92%, it has a attractive valuation with a 3.37 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 -0.71%, its profits have risen by 25.5% ; the PEG ratio of the company is 0.9

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 28.54% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -0.71% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to MARUWA CO., LTD. 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 MARUWA CO., LTD. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

MARUWA CO., LTD.

-0.71%

0.45

56.85%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.75%

EBIT Growth (5y)

23.56%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.56

Sales to Capital Employed (avg)

0.57

Tax Ratio

29.15%

Dividend Payout Ratio

6.03%

Pledged Shares

Institutional Holding

ROCE (avg)

41.71%

ROE (avg)

14.43%

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

3.37

EV to EBIT

13.32

EV to EBITDA

11.35

EV to Capital Employed

6.40

EV to Sales

4.99

PEG Ratio

0.89

Dividend Yield

ROCE (Latest)

48.01%

ROE (Latest)

14.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

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 0.41% (YoY

CASH AND EQV(HY)

Highest at JPY 141,478 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 5%

-4What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.97%

PRE-TAX PROFIT(Q)

Lowest at JPY 5,721 MM

NET PROFIT(Q)

Lowest at JPY 3,878.68 MM

EPS(Q)

Lowest at JPY 314.27

Here's what is working for MARUWA CO., LTD.

Cash and Eqv

Highest at JPY 141,478 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 5%

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 0.41% (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 MARUWA CO., LTD.

Pre-Tax Profit

Lowest at JPY 5,721 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 3,878.68 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 314.27

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 2.97%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio