Medical System Network Co., Ltd. (4350) 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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Medical System Network Co., Ltd.

Why is Medical System Network Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate -1.34% of over the last 5 years
The company is Net-Debt Free

The company has declared negative results for the last 2 consecutive quarters

ROCE(HY) Lowest at 6.39%
INTEREST COVERAGE RATIO(Q) Lowest at 1,708.49
NET PROFIT(Q) At JPY 124.69 MM has Fallen at -66.93%

With ROCE of 7.16%, it has a very expensive valuation with a 0.97 Enterprise value to Capital Employed

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 0.85%, its profits have fallen by -15.9%

Underperformed the market in the last 1 year

The stock has generated a return of 0.85% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.12%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Medical System Network Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Medical System Network Co., Ltd.

2.18%

-0.83

25.46%

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)

4.34%

EBIT Growth (5y)

-1.34%

EBIT to Interest (avg)

14.62

Debt to EBITDA (avg)

2.85

Net Debt to Equity (avg)

1.00

Sales to Capital Employed (avg)

2.92

Tax Ratio

52.28%

Dividend Payout Ratio

27.79%

Pledged Shares

Institutional Holding

ROCE (avg)

10.67%

ROE (avg)

15.74%

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

0.94

EV to EBIT

13.62

EV to EBITDA

6.29

EV to Capital Employed

0.97

EV to Sales

0.31

PEG Ratio

Dividend Yield

ROCE (Latest)

7.16%

ROE (Latest)

9.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

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

5What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 292.28%

RAW MATERIAL COST(Y)

Fallen by 1.59% (YoY

PRE-TAX PROFIT(Q)

At JPY 908 MM has Grown at 73.61%

-25What is not working for the Company

ROCE(HY)

Lowest at 6.39%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,708.49

NET PROFIT(Q)

At JPY 124.69 MM has Fallen at -66.93%

CASH AND EQV(HY)

Lowest at JPY 15,895 MM

DEBT-EQUITY RATIO (HY)

Highest at 173.13 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 12.3 times

INTEREST(Q)

Highest at JPY 106 MM

Here's what is working for Medical System Network Co., Ltd.

Pre-Tax Profit

At JPY 908 MM has Grown at 73.61%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Dividend Payout Ratio

Highest at 292.28%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 1.59% (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 Medical System Network Co., Ltd.

Interest

At JPY 106 MM has Grown at 19.1%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,708.49

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At JPY 124.69 MM has Fallen at -66.93%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

Highest at JPY 106 MM

in the last five periods and Increased by 19.1% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 15,895 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 173.13 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 12.3 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at JPY 0.15 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income