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
ROCE(HY) Lowest at 4.98%
PRE-TAX PROFIT(Q) At JPY 1,048 MM has Fallen at -45.64%
NET PROFIT(Q) At JPY 585.46 MM has Fallen at -52.85%

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 10.75%, its profits have fallen by -15.9%

Underperformed the market in the last 1 year

The stock has generated a return of 10.75% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 69.64%

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.

9.25%

-0.59

26.93%

Japan Nikkei 225

71.75%

2.62

26.55%

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

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (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

3What is working for the Company

NET SALES(Q)

Highest at JPY 34,817 MM

-21What is not working for the Company

ROCE(HY)

Lowest at 4.98%

PRE-TAX PROFIT(Q)

At JPY 1,048 MM has Fallen at -45.64%

NET PROFIT(Q)

At JPY 585.46 MM has Fallen at -52.85%

RAW MATERIAL COST(Y)

Grown by 5.09% (YoY

CASH AND EQV(HY)

Lowest at JPY 14,616 MM

DEBT-EQUITY RATIO (HY)

Highest at 143.57 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.15 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 11.35 times

INTEREST(Q)

Highest at JPY 89 MM

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

Net Sales

Highest at JPY 34,817 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Here's what is not working for Medical System Network Co., Ltd.

Interest

At JPY 89 MM has Grown at 17.11%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 1,048 MM has Fallen at -45.64%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 585.46 MM has Fallen at -52.85%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

Highest at JPY 89 MM

in the last five periods and Increased by 17.11% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 14,616 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 143.57 %

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

Inventory Turnover Ratio

Lowest at 10.15 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 11.35 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 5.09% (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