Why is Meiji Electric Industries Co., Ltd. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Positive results in Dec 25
- DEBT-EQUITY RATIO (HY) Lowest at -39.02 %
- INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
- RAW MATERIAL COST(Y) Fallen by -7.5% (YoY)
3
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 39.33%, its profits have risen by 2.9% ; the PEG ratio of the company is 3.3
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?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Meiji Electric Industries Co., Ltd.
39.33%
1.03
37.51%
Japan Nikkei 225
36.73%
1.30
28.24%
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)
0
Net Debt to Equity (avg)
-0.23
Sales to Capital Employed (avg)
2.29
Tax Ratio
30.89%
Dividend Payout Ratio
31.36%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.96%
ROE (avg)
6.99%
Valuation Key Factors 
Factor
Value
P/E Ratio
10
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
NA
ROCE (Latest)
12.44%
ROE (Latest)
7.24%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Bullish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Movement
7What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at -39.02 %
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by -7.5% (YoY
CASH AND EQV(HY)
Highest at JPY 26,905.55 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 3.68 times
-2What is not working for the Company
NET SALES(Q)
Fallen at -9.59%
OPERATING PROFIT MARGIN(Q)
Lowest at 3.61 %
Here's what is working for Meiji Electric Industries Co., Ltd.
Debt-Equity Ratio
Lowest at -39.02 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Cash and Eqv
Highest at JPY 26,905.55 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 3.68 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -7.5% (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.
Net Sales
Fallen at -9.59%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Operating Profit Margin
Lowest at 3.61 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Non Operating Income
Highest at JPY 0.21 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






