Medical Net, Inc. (3645) 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

Ray Corp.

GMO AD Partners, Inc.

Eole, Inc.

CyberBuzz, Inc.

Interspace Co., Ltd.

Medical Net, Inc.

GMO Media, Inc.

Gendai Agency, Inc.

HYOJITO Co., Ltd.

Scigineer, Inc.

Allied Architects, Inc.

Why is Medical Net, Inc. ?

High Management Efficiency with a high ROE of 11.74%

Company has very low debt and has enough cash to service the debt requirements

The company has declared Negative results for the last 3 consecutive quarters

RAW MATERIAL COST(Y) Grown by 17.81% (YoY)
INTEREST(Q) Highest at JPY 3.6 MM
NET PROFIT(Q) At JPY 69.24 MM has Fallen at -37.33%

With ROE of 26.79%, it has a expensive valuation with a 1.65 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 -7.03%, its profits have risen by 568.3% ; the PEG ratio of the company is 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.03% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Medical Net, 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 Medical Net, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Medical Net, Inc.

-7.03%

-0.99

17.11%

Japan Nikkei 225

70.84%

2.78

25.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.18%

EBIT Growth (5y)

-8.01%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

1.92

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

25.00%

ROE (avg)

11.74%

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

1.65

EV to EBIT

17.88

EV to EBITDA

11.61

EV to Capital Employed

1.96

EV to Sales

0.40

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

10.96%

ROE (Latest)

26.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

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

17What is working for the Company

NET PROFIT(HY)

At JPY 87.71 MM has Grown at 889.13%

INTEREST COVERAGE RATIO(Q)

Highest at 2,484.93

CASH AND EQV(HY)

Highest at JPY 3,486.04 MM

DEBT-EQUITY RATIO (HY)

Lowest at -31.95 %

NET SALES(Q)

Highest at JPY 1,769.49 MM

OPERATING PROFIT(Q)

Highest at JPY 89.51 MM

OPERATING PROFIT MARGIN(Q)

Highest at 5.06 %

-11What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 17.81% (YoY

INTEREST(Q)

Highest at JPY 3.6 MM

NET PROFIT(Q)

At JPY 69.24 MM has Fallen at -37.33%

Here's what is working for Medical Net, Inc.

Interest Coverage Ratio

Highest at 2,484.93

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at JPY 1,769.49 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 1,769.49 MM has Grown at 12.77%

over average net sales of the previous four periods of JPY 1,569.06 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 89.51 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 5.06 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at JPY 3,486.04 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -31.95 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Medical Net, Inc.

Interest

At JPY 3.6 MM has Grown at 10.29%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 3.6 MM

in the last five periods and Increased by 10.29% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 69.24 MM has Fallen at -37.33%

over average net sales of the previous four periods of JPY 110.49 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Raw Material Cost

Grown by 17.81% (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