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

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HYOJITO Co., Ltd.

GMO Media, Inc.

Medical Net, Inc.

Gendai Agency, Inc.

Allied Architects, Inc.

Scigineer, 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

PRE-TAX PROFIT(Q) At JPY 60.95 MM has Fallen at -58.01%
NET PROFIT(Q) At JPY 34.63 MM has Fallen at -71.77%
RAW MATERIAL COST(Y) Grown by 6.34% (YoY)

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 -23.51%, 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 -23.51% 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.

-23.51%

-1.76

21.01%

Japan Nikkei 225

88.41%

3.12

27.27%

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

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

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

12What is working for the Company

NET PROFIT(HY)

At JPY 103.86 MM has Grown at 336.7%

ROCE(HY)

Highest at 11.11%

CASH AND EQV(HY)

Highest at JPY 3,920.89 MM

DEBT-EQUITY RATIO (HY)

Lowest at -33.87 %

-19What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 60.95 MM has Fallen at -58.01%

NET PROFIT(Q)

At JPY 34.63 MM has Fallen at -71.77%

RAW MATERIAL COST(Y)

Grown by 6.34% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.71 times

INTEREST(Q)

Highest at JPY 4.11 MM

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

Cash and Eqv

Highest at JPY 3,920.89 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -33.87 %

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.

Pre-Tax Profit

At JPY 60.95 MM has Fallen at -58.01%

over average net sales of the previous four periods of JPY 145.13 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 34.63 MM has Fallen at -71.77%

over average net sales of the previous four periods of JPY 122.67 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 4.11 MM has Grown at 13.96%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 4.11 MM

in the last five periods and Increased by 13.96% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 6.71 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 6.34% (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