MegaChips Corp. (6875) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hosiden Corp.

HIROSE ELECTRIC CO., LTD.

IRISO Electronics Co., Ltd.

Citizen Watch Co., Ltd.

Taiyo Yuden Co., Ltd.

Shinko Electric Industries Co., Ltd.

Nichicon Corp.

Japan Aviation Electronics Industry Ltd.

Hamamatsu Photonics KK

MegaChips Corp.

Japan Display, Inc.

Why is MegaChips Corp. ?

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

INTEREST(9M) At JPY 6.99 MM has Grown at 3,063.35%
OPERATING CASH FLOW(Y) Lowest at JPY 55.34 MM
NET SALES(Q) At JPY 6,490.52 MM has Fallen at -38.66%

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 Electronics & Appliances)

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

Is MegaChips Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

MegaChips Corp.

-100.0%

2.72

41.10%

Japan Nikkei 225

38.59%

1.45

26.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.44%

EBIT Growth (5y)

17.63%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

0.53

Tax Ratio

33.16%

Dividend Payout Ratio

19.59%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

10.55%

ROE (avg)

20.47%

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

0.85

EV to EBIT

36.32

EV to EBITDA

22.36

EV to Capital Employed

0.82

EV to Sales

1.88

PEG Ratio

0.63

Dividend Yield

ROCE (Latest)

2.26%

ROE (Latest)

4.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-46What is not working for the Company

INTEREST(9M)

At JPY 6.99 MM has Grown at 3,063.35%

OPERATING CASH FLOW(Y)

Lowest at JPY 55.34 MM

NET SALES(Q)

At JPY 6,490.52 MM has Fallen at -38.66%

PRE-TAX PROFIT(Q)

At JPY -754.59 MM has Fallen at -134.38%

NET PROFIT(Q)

At JPY -577.51 MM has Fallen at -139.88%

ROCE(HY)

Lowest at 2.09%

RAW MATERIAL COST(Y)

Grown by 40.2% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.97%

OPERATING PROFIT(Q)

Lowest at JPY -70.65 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.09 %

EPS(Q)

Lowest at JPY -34.1

Here's what is not working for MegaChips Corp.

Interest

At JPY 6.99 MM has Grown at 3,063.35%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 6,490.52 MM has Fallen at -38.66%

over average net sales of the previous four periods of JPY 10,581.61 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY -754.59 MM has Fallen at -134.38%

over average net sales of the previous four periods of JPY 2,195.12 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -577.51 MM has Fallen at -139.88%

over average net sales of the previous four periods of JPY 1,448.25 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Cash Flow

Lowest at JPY 55.34 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Net Sales

Lowest at JPY 6,490.52 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY -70.65 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -1.09 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -754.59 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -577.51 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -34.1

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 7.97%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 40.2% (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