Matsumoto Inc. (7901) 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

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Matsumoto Inc.

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Mitsumura Printing Co., Ltd.

Scinex Corp.

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KYORITSU Co., Ltd. (Tokyo)

Why is Matsumoto Inc. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 0.98%

Poor long term growth as Net Sales has grown by an annual rate of -4.21% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -117.75

With a growth in Operating Profit of 17.72%, the company declared Very Positive results in Apr 26

ROCE(HY) Highest at 17.12%
RAW MATERIAL COST(Y) Fallen by -13.66% (YoY)
CASH AND EQV(HY) Highest at JPY 1,239.63 MM

With ROE of -16.30%, it has a risky valuation with a 1.50 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 -42.37%, its profits have risen by 58.2%

Below par performance in long term as well as near term

Along with generating -42.37% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Matsumoto Inc. 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 Matsumoto Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Matsumoto Inc.

-38.13%

-0.52

100.38%

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)

-4.21%

EBIT Growth (5y)

-13.65%

EBIT to Interest (avg)

-72.44

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

1.58

Tax Ratio

1.97%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.98%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.50

EV to EBIT

-4.98

EV to EBITDA

-6.31

EV to Capital Employed

1.32

EV to Sales

0.57

PEG Ratio

Dividend Yield

ROCE (Latest)

-26.55%

ROE (Latest)

-16.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

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

19What is working for the Company

ROCE(HY)

Highest at 17.12%

RAW MATERIAL COST(Y)

Fallen by -13.66% (YoY

CASH AND EQV(HY)

Highest at JPY 1,239.63 MM

NET SALES(Q)

Highest at JPY 1,468.29 MM

OPERATING PROFIT(Q)

Highest at JPY 398.62 MM

OPERATING PROFIT MARGIN(Q)

Highest at 27.15 %

PRE-TAX PROFIT(Q)

Highest at JPY 380.86 MM

NET PROFIT(Q)

Highest at JPY 383.63 MM

EPS(Q)

Highest at JPY 338.88

-8What is not working for the Company

INTEREST(HY)

At JPY 13.02 MM has Grown at 20.32%

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.64 times

Here's what is working for Matsumoto Inc.

Net Sales

Highest at JPY 1,468.29 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 398.62 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 27.15 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 380.86 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 383.63 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 338.88

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 1,239.63 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -13.66% (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 Matsumoto Inc.

Interest

At JPY 13.02 MM has Grown at 20.32%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 7.64 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio