Mercuria Holdings Co., Ltd. (7190) 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

SBI Holdings, Inc.

Hokkoku Financial Holdings, Inc.

Integrated Design & Engineering Holdings Co., Ltd.

Mercuria Holdings Co., Ltd.

Ikka Holdings Co., Ltd.

Procrea Holdings, Inc.

Why is Mercuria Holdings Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 6.96%

Poor long term growth as Net Sales has grown by an annual rate of 3.10% and Operating profit at 26.63%

Positive results in Mar 26

NET SALES(HY) Higher at JPY 5,414.07 MM
NET PROFIT(HY) Higher at JPY 1,539.81 MM
ROCE(HY) Highest at 10.11%

With ROE of 9.91%, it has a very attractive valuation with a 0.89 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 -1.56%, its profits have risen by 195% ; the PEG ratio of the company is 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.56% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mercuria Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

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

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

Is Mercuria Holdings Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mercuria Holdings Co., Ltd.

-1.56%

-0.51

26.53%

Japan Nikkei 225

71.75%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.10%

EBIT Growth (5y)

26.63%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

47.72%

Dividend Payout Ratio

25.27%

Pledged Shares

Institutional Holding

ROCE (avg)

12.34%

ROE (avg)

6.96%

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

0.89

EV to EBIT

4.30

EV to EBITDA

4.17

EV to Capital Employed

0.85

EV to Sales

1.50

PEG Ratio

0.05

Dividend Yield

ROCE (Latest)

19.72%

ROE (Latest)

9.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

25What is working for the Company

NET SALES(HY)

Higher at JPY 5,414.07 MM

NET PROFIT(HY)

Higher at JPY 1,539.81 MM

ROCE(HY)

Highest at 10.11%

CASH AND EQV(HY)

Highest at JPY 8,377.22 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.19 times

-21What is not working for the Company

NET SALES(Q)

At JPY 963.03 MM has Fallen at -46.61%

PRE-TAX PROFIT(Q)

At JPY -102.3 MM has Fallen at -116.02%

NET PROFIT(Q)

At JPY -104.32 MM has Fallen at -124.77%

RAW MATERIAL COST(Y)

Grown by 7.92% (YoY

INTEREST(Q)

Highest at JPY 4.46 MM

Here's what is working for Mercuria Holdings Co., Ltd.

Cash and Eqv

Highest at JPY 8,377.22 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 4.19 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Mercuria Holdings Co., Ltd.

Net Sales

At JPY 963.03 MM has Fallen at -46.61%

over average net sales of the previous four periods of JPY 1,803.93 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY -102.3 MM has Fallen at -116.02%

over average net sales of the previous four periods of JPY 638.52 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -104.32 MM has Fallen at -124.77%

over average net sales of the previous four periods of JPY 421.15 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 4.46 MM has Grown at 11.5%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 4.46 MM

in the last five periods and Increased by 11.5% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 7.92% (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