Meiji Holdings Co., Ltd. (2269) 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

Nissin Foods Holdings Co., Ltd.

Fuji Oil Holdings, Inc.

Toyo Suisan Kaisha, Ltd.

Morinaga & Co., Ltd.

Kikkoman Corp.

Yamazaki Baking Co., Ltd.

Ajinomoto Co., Inc.

Meiji Holdings Co., Ltd.

Kagome Co., Ltd.

CALBEE, Inc.

House Foods Group, Inc.

Why is Meiji Holdings Co., Ltd. ?

High Management Efficiency with a high ROE of 10.57%

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

Poor long term growth as Net Sales has grown by an annual rate of -1.63% and Operating profit at -3.78% over the last 5 years

Negative results in Jun 25

INTEREST(HY) At JPY 214 MM has Grown at 40.79%
INTEREST COVERAGE RATIO(Q) Lowest at 28,644.95
NET PROFIT(HY) At JPY 18,153.26 MM has Grown at -32.44%

With ROE of 7.38%, it has a very attractive valuation with a 1.21 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 4.26%, its profits have fallen by -10.3%

Underperformed the market in the last 1 year

The stock has generated a return of 4.26% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Meiji Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Meiji Holdings Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Meiji Holdings Co., Ltd.

4.26%

-0.36

19.01%

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)

-1.63%

EBIT Growth (5y)

-3.78%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.10

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

1.37

Tax Ratio

34.43%

Dividend Payout Ratio

53.74%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

12.69%

ROE (avg)

10.57%

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

1.21

EV to EBIT

10.34

EV to EBITDA

6.27

EV to Capital Employed

1.22

EV to Sales

0.76

PEG Ratio

Dividend Yield

ROCE (Latest)

11.80%

ROE (Latest)

7.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.63% (YoY

-19What is not working for the Company

INTEREST(HY)

At JPY 214 MM has Grown at 40.79%

INTEREST COVERAGE RATIO(Q)

Lowest at 28,644.95

NET PROFIT(HY)

At JPY 18,153.26 MM has Grown at -32.44%

ROCE(HY)

Lowest at 6.3%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.48%

NET SALES(Q)

Lowest at JPY 273,569 MM

OPERATING PROFIT(Q)

Lowest at JPY 31,223 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.41 %

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

Raw Material Cost

Fallen by 0.63% (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 Holdings Co., Ltd.

Interest

At JPY 214 MM has Grown at 40.79%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 28,644.95 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At JPY 18,153.26 MM has Grown at -32.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 273,569 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 31,223 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 11.41 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 3.48%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio