Why is Mec Co., Ltd. ?
1
High Management Efficiency with a high ROE of 10.90%
2
Company has very low debt and has enough cash to service the debt requirements
3
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 10.90%
- INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
- RAW MATERIAL COST(Y) Fallen by 1.67% (YoY)
- DIVIDEND PER SHARE(HY) Highest at JPY 3.1
4
Market Beating performance in long term as well as near term
- Along with generating 62.13% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
How much should you buy?
- Overall Portfolio exposure to Mec Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Specialty Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Mec Co., Ltd. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Mec Co., Ltd.
53.15%
0.58
49.99%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality key factors
Factor
Value
Sales Growth (5y)
10.03%
EBIT Growth (5y)
18.99%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.35
Sales to Capital Employed (avg)
0.64
Tax Ratio
56.76%
Dividend Payout Ratio
36.77%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
24.23%
ROE (avg)
10.90%
Valuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
Price to Book Value
1.95
EV to EBIT
9.14
EV to EBITDA
7.76
EV to Capital Employed
2.46
EV to Sales
2.30
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
26.94%
ROE (Latest)
7.59%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Bullish
Bullish
Technical Movement
8What is working for the Company
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by 1.67% (YoY
DIVIDEND PER SHARE(HY)
Highest at JPY 3.1
NET SALES(Q)
Highest at JPY 4,963.14 MM
OPERATING PROFIT(Q)
Highest at JPY 1,545.89 MM
NET PROFIT(Q)
At JPY 995.37 MM has Grown at 100.21%
EPS(Q)
Highest at JPY 76.93
-11What is not working for the Company
NET PROFIT(9M)
At JPY 1,135.87 MM has Grown at -54.35%
INTEREST(9M)
At JPY 0.74 MM has Grown at 13.22%
ROCE(HY)
Lowest at 8.45%
DIVIDEND PAYOUT RATIO(Y)
Lowest at 32.5%
DEBT-EQUITY RATIO
(HY)
Highest at -32.39 %
Here's what is working for Mec Co., Ltd.
Net Sales
Highest at JPY 4,963.14 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 1,545.89 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Net Profit
At JPY 995.37 MM has Grown at 100.21%
over average net sales of the previous four periods of JPY 497.16 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 76.93
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Dividend per share
Highest at JPY 3.1
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Raw Material Cost
Fallen by 1.67% (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 Mec Co., Ltd.
Interest
At JPY 0.74 MM has Grown at 13.22%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at -32.39 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Dividend Payout Ratio
Lowest at 32.5%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)






