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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sansei Technologies, Inc.

Technoflex Corp.

Marumae Co., Ltd.

Meiji Electric Industries Co., Ltd.

Seibu Electric & Machinery Co., Ltd.

Techno Smart Corp.

Maezawa Industries, Inc.

JUKI Corp.

Futaba Corp.

Sanden Corp.

Nissei Plastic Industrial Co., Ltd.

Why is Meiji Electric Industries Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Positive results in Jun 25

DEBT-EQUITY RATIO (HY) Lowest at -25.4 %
PRE-TAX PROFIT(Q) At JPY 622.98 MM has Grown at 225.72%
NET PROFIT(Q) At JPY 439.9 MM has Grown at 229.08%

With ROE of 7.24%, it has a very attractive valuation with a 0.69 Price to Book Value

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 70.04%, its profits have risen by 2.9% ; the PEG ratio of the company is 3.3

Market Beating Performance

The stock has generated a return of 70.04% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Meiji Electric Industries Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

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

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Meiji Electric Industries Co., Ltd.

69.83%

1.15

36.18%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.44%

EBIT Growth (5y)

-3.39%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

2.28

Tax Ratio

30.89%

Dividend Payout Ratio

31.36%

Pledged Shares

Institutional Holding

ROCE (avg)

10.96%

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

0.69

EV to EBIT

4.85

EV to EBITDA

4.40

EV to Capital Employed

0.60

EV to Sales

0.20

PEG Ratio

3.29

Dividend Yield

ROCE (Latest)

12.44%

ROE (Latest)

7.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

Mildly Bullish

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

11What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -25.4 %

PRE-TAX PROFIT(Q)

At JPY 622.98 MM has Grown at 225.72%

NET PROFIT(Q)

At JPY 439.9 MM has Grown at 229.08%

RAW MATERIAL COST(Y)

Fallen by -14.07% (YoY

CASH AND EQV(HY)

Highest at JPY 16,832.5 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 10.34%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.41%

-7What is not working for the Company

INTEREST(HY)

At JPY 6.31 MM has Grown at 70.8%

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

Pre-Tax Profit

At JPY 622.98 MM has Grown at 225.72%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 439.9 MM has Grown at 229.08%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at -25.4 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Cash and Eqv

Highest at JPY 16,832.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 10.34%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.41%

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 -14.07% (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.

Interest

At JPY 6.31 MM has Grown at 70.8%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)