Meiji Machine Co., Ltd. (6334) 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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Meiji Machine Co., Ltd.

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Why is Meiji Machine Co., Ltd. ?

With a fall in Net Sales of -29.76%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 3 consecutive quarters
NET SALES(Q) At JPY 1,863.26 MM has Fallen at -29.76%
ROCE(HY) Lowest at 0.83%
CASH AND EQV(HY) Lowest at JPY 2,349.6 MM

Underperformed the market in the last 1 year

The stock has generated a return of 57.97% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 75.22%

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 Machine Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Meiji Machine Co., Ltd.

57.97%

0.94

30.86%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-13.95%

EBIT Growth (5y)

-34.02%

EBIT to Interest (avg)

7.74

Debt to EBITDA (avg)

0.19

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

1.20

Tax Ratio

21.41%

Dividend Payout Ratio

55.49%

Pledged Shares

Institutional Holding

ROCE (avg)

10.70%

ROE (avg)

14.21%

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

1.57

EV to EBIT

154.92

EV to EBITDA

28.25

EV to Capital Employed

1.50

EV to Sales

0.79

PEG Ratio

Dividend Yield

ROCE (Latest)

0.97%

ROE (Latest)

2.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 35.47%

RAW MATERIAL COST(Y)

Fallen by -14.56% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 6.87 times

-38What is not working for the Company

NET SALES(Q)

At JPY 1,863.26 MM has Fallen at -29.76%

ROCE(HY)

Lowest at 0.83%

CASH AND EQV(HY)

Lowest at JPY 2,349.6 MM

DEBT-EQUITY RATIO (HY)

Highest at 25.47 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.7 times

INTEREST(Q)

Highest at JPY 5.7 MM

PRE-TAX PROFIT(Q)

Fallen at -44.72%

NET PROFIT(Q)

Fallen at -44.96%

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

Inventory Turnover Ratio

Highest at 6.87 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 35.47%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -14.56% (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

Depreciation

Highest at JPY 46.1 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 50.16 MM has Grown at 33.47%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Meiji Machine Co., Ltd.

Net Sales

At JPY 1,863.26 MM has Fallen at -29.76%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Interest

At JPY 5.7 MM has Grown at 15.28%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 187.45 MM has Fallen at -45.66%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest

Highest at JPY 5.7 MM

in the last five periods and Increased by 15.28% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Fallen at -44.72%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Fallen at -44.96%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Cash and Eqv

Lowest at JPY 2,349.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 25.47 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 2.7 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio