Meisei Industrial Co., Ltd. (1976) 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

Shin Nippon Air Technologies Co., Ltd.

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Oyo Corp.

Seikitokyu Kogyo Co., Ltd.

Daiho Corp.

Meisei Industrial Co., Ltd.

Sumitomo Mitsui Construction Co., Ltd.

JDC Corp. (Japan)

Nichireki Co., Ltd.

Yurtec Corp.

Why is Meisei Industrial Co., Ltd. ?

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 3.89% and Operating profit at 9.75% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(HY) At JPY 4 MM has Grown at 33.33%
ROCE(HY) Lowest at 7.99%
NET SALES(Q) At JPY 16,154 MM has Fallen at -14.93%

With ROE of 11.37%, it has a very attractive valuation with a 1.57 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 20.96%, its profits have risen by 8.6% ; the PEG ratio of the company is 1.2
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 20.96% 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 hold?

Overall Portfolio exposure to Meisei Industrial Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Meisei Industrial Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Meisei Industrial Co., Ltd.

20.96%

1.75

26.48%

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)

3.89%

EBIT Growth (5y)

9.75%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.48

Sales to Capital Employed (avg)

0.95

Tax Ratio

26.95%

Dividend Payout Ratio

34.35%

Pledged Shares

Institutional Holding

ROCE (avg)

22.98%

ROE (avg)

9.17%

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

7.53

EV to EBITDA

6.87

EV to Capital Employed

2.03

EV to Sales

1.20

PEG Ratio

1.24

Dividend Yield

ROCE (Latest)

26.95%

ROE (Latest)

11.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

5What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 135.89%

CASH AND EQV(HY)

Highest at JPY 68,337 MM

DEBT-EQUITY RATIO (HY)

Lowest at -51.95 %

DIVIDEND PER SHARE(HY)

Highest at JPY 2.48

NET PROFIT(Q)

Highest at JPY 4,239 MM

-15What is not working for the Company

INTEREST(HY)

At JPY 4 MM has Grown at 33.33%

ROCE(HY)

Lowest at 7.99%

NET SALES(Q)

At JPY 16,154 MM has Fallen at -14.93%

RAW MATERIAL COST(Y)

Grown by 28.66% (YoY

Here's what is working for Meisei Industrial Co., Ltd.

Net Profit

Highest at JPY 4,239 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 68,337 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -51.95 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend per share

Highest at JPY 2.48

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 135.89%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at JPY 263 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Here's what is not working for Meisei Industrial Co., Ltd.

Interest

At JPY 4 MM has Grown at 33.33%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 16,154 MM has Fallen at -14.93%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Raw Material Cost

Grown by 28.66% (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

Non Operating Income

Highest at JPY 1.37 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income