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
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 33.54%, 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.
32.49%
0.79
22.67%
Japan Nikkei 225
28.54%
1.14
25.81%
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)
3.78
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
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Movement
8What is working for the Company
ROCE(HY)
Highest at 9.57%
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by -32.39% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 3.64%
OPERATING PROFIT(Q)
Highest at JPY 1,503 MM
OPERATING PROFIT MARGIN(Q)
Highest at 3.87 %
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Meiwa Corp.
Operating Profit
Highest at JPY 1,503 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 3.87 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Debtors Turnover Ratio
Highest at 3.64%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -32.39% (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






