Why is Meiwa Corp. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 68.52
2
Low Debt Company with Strong Long Term Fundamental Strength
3
Positive results in Dec 25
- RAW MATERIAL COST(Y) Fallen by 1.77% (YoY)
- CASH AND EQV(HY) Highest at JPY 20,760 MM
- INVENTORY TURNOVER RATIO(HY) Highest at 21.26 times
4
With ROE of 8.91%, it has a very attractive valuation with a 0.71 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 12.19%, its profits have risen by 22.8% ; the PEG ratio of the company is 0.3
- At the current price, the company has a high dividend yield of 0.1
How much should you buy?
- Overall Portfolio exposure to Meiwa Corp. should be less than 10%
- Overall Portfolio exposure to Trading & Distributors should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Meiwa Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Meiwa Corp.
12.19%
0.49
28.13%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality key factors
Factor
Value
Sales Growth (5y)
2.72%
EBIT Growth (5y)
19.19%
EBIT to Interest (avg)
68.52
Debt to EBITDA (avg)
0.13
Net Debt to Equity (avg)
-0.18
Sales to Capital Employed (avg)
3.75
Tax Ratio
26.72%
Dividend Payout Ratio
50.44%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
9.38%
ROE (avg)
6.33%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
0.71
EV to EBIT
5.78
EV to EBITDA
5.39
EV to Capital Employed
0.65
EV to Sales
0.13
PEG Ratio
0.29
Dividend Yield
0.08%
ROCE (Latest)
11.27%
ROE (Latest)
8.91%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Movement
5What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 1.77% (YoY
CASH AND EQV(HY)
Highest at JPY 20,760 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 21.26 times
NET SALES(Q)
Highest at JPY 45,136 MM
-2What is not working for the Company
NET PROFIT(HY)
At JPY 1,191.09 MM has Grown at -29.78%
Here's what is working for Meiwa Corp.
Net Sales
Highest at JPY 45,136 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Sales
At JPY 45,136 MM has Grown at 16.27%
over average net sales of the previous four periods of JPY 38,820.75 MMMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Cash and Eqv
Highest at JPY 20,760 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 21.26 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 1.77% (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 82 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 Meiwa Corp.
Net Profit
At JPY 1,191.09 MM has Grown at -29.78%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)






