Meidensha Corp. (6508) 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

Taiyo Holdings Co., Ltd.

Mabuchi Motor Co., Ltd.

Fujikura Ltd.

Meidensha Corp.

TOKYO OHKA KOGYO CO., LTD.

Nitto Kogyo Corp.

MARUWA CO., LTD.

Furukawa Electric Co., Ltd.

GS Yuasa Corp.

Daihen Corp.

Tokai Carbon Co., Ltd.

Why is Meidensha Corp. ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.43 times

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at JPY 35,608 MM
ROCE(HY) Highest at 13.64%
RAW MATERIAL COST(Y) Fallen by -7.49% (YoY)

With ROCE of 14.09%, it has a very attractive valuation with a 1.49 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 39.59%, its profits have risen by 53.9% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0

Consistent Returns over the last 3 years

Along with generating 39.59% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Meidensha Corp. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Meidensha Corp. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Meidensha Corp.

39.59%

0.68

49.39%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.32%

EBIT Growth (5y)

11.07%

EBIT to Interest (avg)

16.07

Debt to EBITDA (avg)

1.43

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

1.70

Tax Ratio

20.81%

Dividend Payout Ratio

30.18%

Pledged Shares

Institutional Holding

ROCE (avg)

8.23%

ROE (avg)

8.98%

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

1.53

EV to EBIT

10.54

EV to EBITDA

6.94

EV to Capital Employed

1.49

EV to Sales

0.75

PEG Ratio

0.22

Dividend Yield

0.01%

ROCE (Latest)

14.09%

ROE (Latest)

13.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 35,608 MM

ROCE(HY)

Highest at 13.64%

RAW MATERIAL COST(Y)

Fallen by -7.49% (YoY

NET PROFIT(9M)

Higher at JPY 16,115.29 MM

CASH AND EQV(HY)

Highest at JPY 71,583 MM

DEBT-EQUITY RATIO (HY)

Lowest at -1.45 %

DEBTORS TURNOVER RATIO(HY)

Highest at 4.03%

-8What is not working for the Company

PRE-TAX PROFIT(Q)

Lowest at JPY 565 MM

NET PROFIT(Q)

Lowest at JPY 466 MM

EPS(Q)

Lowest at JPY 10.25

Here's what is working for Meidensha Corp.

Operating Cash Flow

Highest at JPY 35,608 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Cash and Eqv

Highest at JPY 71,583 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -1.45 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 4.03%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -7.49% (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 Meidensha Corp.

Pre-Tax Profit

At JPY 565 MM has Fallen at -61.77%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 466 MM has Fallen at -56.07%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 565 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 466 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 10.25

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)