Meiwa Industry Co., Ltd. (7284) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Meiwa Industry Co., Ltd.

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FALTEC Co., Ltd.

Sawafuji Electric Co., Ltd.

Why is Meiwa Industry Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.22%

The company has been able to generate a Return on Capital Employed (avg) of 1.22% signifying low profitability per unit of total capital (equity and debt)

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -0.90

Poor long term growth as Net Sales has grown by an annual rate of 0.78% and Operating profit at 25.31% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -0.90
The company has been able to generate a Return on Equity (avg) of 1.46% signifying low profitability per unit of shareholders funds

The company has declared Positive results for the last 3 consecutive quarters

NET PROFIT(HY) Higher at JPY 438.72 MM
ROCE(HY) Highest at 5.07%
RAW MATERIAL COST(Y) Fallen by -20.76% (YoY)

With ROCE of 3.45%, it has a very attractive valuation with a 0.42 Enterprise value to Capital Employed

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 -6.22%, its profits have risen by 339.1% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Meiwa Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Meiwa Industry Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Meiwa Industry Co., Ltd.

-4.55%

0.70

28.09%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.78%

EBIT Growth (5y)

25.31%

EBIT to Interest (avg)

-0.90

Debt to EBITDA (avg)

2.37

Net Debt to Equity (avg)

0.22

Sales to Capital Employed (avg)

1.29

Tax Ratio

18.38%

Dividend Payout Ratio

38.63%

Pledged Shares

Institutional Holding

ROCE (avg)

1.22%

ROE (avg)

1.46%

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

0.30

EV to EBIT

12.29

EV to EBITDA

4.38

EV to Capital Employed

0.42

EV to Sales

0.27

PEG Ratio

0.02

Dividend Yield

0.05%

ROCE (Latest)

3.45%

ROE (Latest)

4.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

15What is working for the Company

NET PROFIT(HY)

Higher at JPY 438.72 MM

ROCE(HY)

Highest at 5.07%

RAW MATERIAL COST(Y)

Fallen by -20.76% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 5.29%

-6What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 39.99 MM has Fallen at -73.12%

NET PROFIT(Q)

At JPY 12.57 MM has Fallen at -89.78%

Here's what is working for Meiwa Industry Co., Ltd.

Inventory Turnover Ratio

Highest at 5.29%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -20.76% (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

Here's what is not working for Meiwa Industry Co., Ltd.

Pre-Tax Profit

At JPY 39.99 MM has Fallen at -73.12%

over average net sales of the previous four periods of JPY 148.78 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 12.57 MM has Fallen at -89.78%

over average net sales of the previous four periods of JPY 123.08 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Non Operating Income

Highest at JPY 0.63 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income