ScoreWhy is Meito Sangyo Co., Ltd. ?
1
Poor Management Efficiency with a low ROE of 5.90%
- The company has been able to generate a Return on Equity (avg) of 5.90% signifying low profitability per unit of shareholders funds
2
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 10.83
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 10.83
- The company has been able to generate a Return on Capital Employed (avg) of 0.92% signifying low profitability per unit of total capital (equity and debt)
3
Poor long term growth as Net Sales has grown by an annual rate of 3.78% and Operating profit at 42.78% over the last 5 years
4
The company has declared Negative results for the last 6 consecutive quarters
- RAW MATERIAL COST(Y) Grown by 10.37% (YoY)
- CASH AND EQV(HY) Lowest at JPY 8,721 MM
- DEBT-EQUITY RATIO (HY) Highest at 20.73 %
5
With ROE of 5.34%, it has a very expensive valuation with a 0.80 Price to Book Value
- Over the past year, while the stock has generated a return of 59.15%, its profits have fallen by -34.6%
- At the current price, the company has a high dividend yield of 0
Real-Time Research ReportHow 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 Meito Sangyo Co., Ltd. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Meito Sangyo Co., Ltd.
62.37%
3.99
22.75%
Japan Nikkei 225
57.85%
1.98
29.31%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.78%
EBIT Growth (5y)
42.78%
EBIT to Interest (avg)
10.99
Debt to EBITDA (avg)
2.08
Net Debt to Equity (avg)
0.04
Sales to Capital Employed (avg)
0.40
Tax Ratio
28.02%
Dividend Payout Ratio
30.03%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.09%
ROE (avg)
5.90%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
0.80
EV to EBIT
43.25
EV to EBITDA
17.95
EV to Capital Employed
0.84
EV to Sales
2.13
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
1.93%
ROE (Latest)
5.34%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Bullish
Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 6.48 times
-15What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 10.37% (YoY
CASH AND EQV(HY)
Lowest at JPY 8,721 MM
DEBT-EQUITY RATIO
(HY)
Highest at 20.73 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.24 times
INTEREST(Q)
Highest at JPY 61 MM
Here's what is working for Meito Sangyo Co., Ltd.
Debtors Turnover Ratio
Highest at 6.48 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Depreciation
Highest at JPY 530 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Meito Sangyo Co., Ltd.
Interest
At JPY 61 MM has Grown at 19.61%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 61 MM
in the last five periods and Increased by 19.61% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Cash and Eqv
Lowest at JPY 8,721 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 20.73 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 3.24 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 10.37% (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
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