Meiwa Corp. (8103) 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

Meiwa Corp.

Takebishi Corp.

SATO SHO-JI CORP.

Yashima Denki Co., Ltd.

JK Holdings Co., Ltd.

Kanaden Corp.

Suzuden Corp.

Beauty Garage, Inc.

Sumiseki Holdings, Inc.

Soft99 Corp.

Maruzen CHI Holdings Co., Ltd.

Why is Meiwa Corp. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 68.52

Low Debt Company with Strong Long Term Fundamental Strength

Positive results in Mar 26

CASH AND EQV(HY) Highest at JPY 22,138 MM
INVENTORY TURNOVER RATIO(HY) Highest at 22.72 times
DEBTORS TURNOVER RATIO(HY) Highest at 3.9 times

With ROE of 7.92%, it has a very attractive valuation with a 0.84 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 27.42%, its profits have fallen by -4.1%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

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.

27.42%

0.74

28.38%

Japan Nikkei 225

88.41%

3.12

27.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.81%

EBIT Growth (5y)

15.44%

EBIT to Interest (avg)

68.52

Debt to EBITDA (avg)

0.13

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

3.74

Tax Ratio

26.72%

Dividend Payout Ratio

50.44%

Pledged Shares

Institutional Holding

ROCE (avg)

9.38%

ROE (avg)

6.35%

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

0.84

EV to EBIT

7.15

EV to EBITDA

6.68

EV to Capital Employed

0.81

EV to Sales

0.18

PEG Ratio

Dividend Yield

ROCE (Latest)

11.38%

ROE (Latest)

7.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

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

6What is working for the Company

CASH AND EQV(HY)

Highest at JPY 22,138 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 22.72 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.9 times

PRE-TAX PROFIT(Q)

Highest at JPY 1,699 MM

NET PROFIT(Q)

Highest at JPY 1,197 MM

EPS(Q)

Highest at JPY 30.03

-10What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 3,674.07

RAW MATERIAL COST(Y)

Grown by 5.45% (YoY

INTEREST(Q)

Highest at JPY 27 MM

Here's what is working for Meiwa Corp.

Pre-Tax Profit

Highest at JPY 1,699 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,197 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 30.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 22,138 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 22.72 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.9 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 124 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 124 MM has Grown at 51.22%

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 Meiwa Corp.

Interest

At JPY 27 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 3,674.07

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 27 MM

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

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 5.45% (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