Meiji Electric Industries Co., Ltd. (3388) 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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Sansei Technologies, Inc.

Futaba Corp.

Sanden Corp.

Maezawa Industries, Inc.

JUKI Corp.

Meiji Electric Industries Co., Ltd.

Techno Smart Corp.

Nissei Plastic Industrial Co., Ltd.

Why is Meiji Electric Industries Co., Ltd. ?

Weak Long Term Fundamental Strength with a 11.74% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 2.83% and Operating profit at 11.74% over the last 5 years

With a fall in Net Sales of -15.57%, the company declared Very Negative results in Jun 26

ROCE(HY) Lowest at 6.88%
NET SALES(Q) Lowest at JPY 14,250.07 MM
OPERATING PROFIT(Q) Lowest at JPY 116.31 MM

Underperformed the market in the last 1 year

The stock has generated a return of 3.56% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 61.01%

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 Industrial Manufacturing)

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

Is Meiji Electric Industries Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Meiji Electric Industries Co., Ltd.

3.82%

0.81

30.89%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.83%

EBIT Growth (5y)

11.74%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

2.25

Tax Ratio

29.38%

Dividend Payout Ratio

40.33%

Pledged Shares

Institutional Holding

ROCE (avg)

12.02%

ROE (avg)

6.99%

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

0.73

EV to EBIT

3.09

EV to EBITDA

2.86

EV to Capital Employed

0.56

EV to Sales

0.15

PEG Ratio

0.25

Dividend Yield

ROCE (Latest)

17.98%

ROE (Latest)

8.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.53% (YoY

CASH AND EQV(HY)

Highest at JPY 28,502.22 MM

-23What is not working for the Company

ROCE(HY)

Lowest at 6.88%

NET SALES(Q)

Lowest at JPY 14,250.07 MM

OPERATING PROFIT(Q)

Lowest at JPY 116.31 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.82 %

PRE-TAX PROFIT(Q)

Lowest at JPY 146.45 MM

NET PROFIT(Q)

Lowest at JPY 98.31 MM

EPS(Q)

Lowest at JPY 7.73

Here's what is working for Meiji Electric Industries Co., Ltd.

Cash and Eqv

Highest at JPY 28,502.22 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.53% (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 Meiji Electric Industries Co., Ltd.

Pre-Tax Profit

At JPY 146.45 MM has Fallen at -76.49%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 98.31 MM has Fallen at -77.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

At JPY 14,250.07 MM has Fallen at -15.57%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Net Sales

Lowest at JPY 14,250.07 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 116.31 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 0.82 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 146.45 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 98.31 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 7.73

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Non Operating Income

Highest at JPY 0.79 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income