Meiko Network Japan Co., Ltd. (4668) 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

Entrust, Inc. (Japan)

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Direct Marketing MiX Inc.

FALCO HOLDINGS Co., Ltd.

Payroll, Inc. (Japan)

Tanabe Consulting Group Co., Ltd.

Meiko Network Japan Co., Ltd.

ProjectHoldings, Inc.

Asante, Inc.

Kufu Co., Inc.

Paraca, Inc.

Why is Meiko Network Japan Co., Ltd. ?

Weak Long Term Fundamental Strength with a 78.79% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 7.77% and Operating profit at 78.79% over the last 5 years

Negative results in May 26

RAW MATERIAL COST(Y) Grown by 19.35% (YoY)
OPERATING PROFIT(Q) Lowest at JPY -561 MM
OPERATING PROFIT MARGIN(Q) Lowest at -10 %

With ROE of 13.44%, it has a very attractive valuation with a 1.37 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 0.39%, its profits have risen by 55.7% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 0.39% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Meiko Network Japan Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Meiko Network Japan Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Meiko Network Japan Co., Ltd.

-100.0%

0.29

15.70%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.77%

EBIT Growth (5y)

78.79%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.67

Sales to Capital Employed (avg)

2.02

Tax Ratio

37.98%

Dividend Payout Ratio

39.46%

Pledged Shares

Institutional Holding

ROCE (avg)

42.53%

ROE (avg)

9.71%

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

1.37

EV to EBIT

4.90

EV to EBITDA

4.19

EV to Capital Employed

2.34

EV to Sales

0.33

PEG Ratio

0.18

Dividend Yield

ROCE (Latest)

47.76%

ROE (Latest)

13.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

2What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -69.62 %

INVENTORY TURNOVER RATIO(HY)

Highest at 154.3 times

-19What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 19.35% (YoY

OPERATING PROFIT(Q)

Lowest at JPY -561 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -10 %

PRE-TAX PROFIT(Q)

Lowest at JPY -642 MM

NET PROFIT(Q)

Lowest at JPY -536 MM

EPS(Q)

Lowest at JPY -21.15

Here's what is working for Meiko Network Japan Co., Ltd.

Debt-Equity Ratio

Lowest at -69.62 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 154.3 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Meiko Network Japan Co., Ltd.

Pre-Tax Profit

At JPY -642 MM has Fallen at -87.17%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -536 MM has Fallen at -98.52%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit

Lowest at JPY -561 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -10 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -642 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -536 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -21.15

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 19.35% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales