Why is Meiji Holdings Co., Ltd. ?
1
Weak Long Term Fundamental Strength with a -3.31% CAGR growth in Operating Profits over the last 5 years
2
Poor long term growth as Net Sales has grown by an annual rate of -0.69% and Operating profit at -3.31% over the last 5 years
3
The company has declared negative results for the last 6 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at JPY 56,522 MM
- ROCE(HY) Lowest at 4.61%
- INTEREST COVERAGE RATIO(Q) Lowest at 7,345.67
4
With ROE of 7.26%, it has a very expensive valuation with a 1.34 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 28.67%, its profits have fallen by -3.2%
5
Underperformed the market in the last 1 year
- The stock has generated a return of 28.67% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 61.01%
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 FMCG)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Meiji Holdings Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Meiji Holdings Co., Ltd.
37.0%
0.57
23.22%
Japan Nikkei 225
59.79%
2.06
29.57%
Quality key factors
Factor
Value
Sales Growth (5y)
-0.69%
EBIT Growth (5y)
-3.31%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.04
Sales to Capital Employed (avg)
1.36
Tax Ratio
42.98%
Dividend Payout Ratio
81.13%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
11.90%
ROE (avg)
10.57%
Valuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
1.34
EV to EBIT
12.27
EV to EBITDA
7.58
EV to Capital Employed
1.31
EV to Sales
0.93
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
10.68%
ROE (Latest)
7.26%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -5.21% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 6.5 times
-22What is not working for the Company
NET PROFIT(HY)
At JPY -21,640.03 MM has Grown at -219.21%
INTEREST(HY)
At JPY 854 MM has Grown at 299.07%
OPERATING CASH FLOW(Y)
Lowest at JPY 76,394 MM
ROCE(HY)
Lowest at 5.32%
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.13 times
Here's what is working for Meiji Holdings Co., Ltd.
Debtors Turnover Ratio
Highest at 6.5 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 -5.21% (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.
Net Profit
At JPY -21,640.03 MM has Grown at -219.21%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 854 MM has Grown at 299.07%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Cash Flow
Lowest at JPY 76,394 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (JPY MM)
Inventory Turnover Ratio
Lowest at 3.13 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio






