Mercury Realtech Innovator, Inc. () 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

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Why is Mercury Realtech Innovator, Inc. ?

High Management Efficiency with a high ROE of 10.60%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 68.98

Healthy long term growth as Operating profit has grown by an annual rate 18.64%

Positive results in Feb 26

RAW MATERIAL COST(Y) Fallen by -7.83% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at -76.8 %
PRE-TAX PROFIT(Q) Highest at JPY 135.57 MM

With ROE of 6.48%, it has a very expensive valuation with a 1.97 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 -24.32%, its profits have fallen by -57.9%

Below par performance in long term as well as near term

Along with generating -24.32% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mercury Realtech Innovator, Inc. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Mercury Realtech Innovator, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mercury Realtech Innovator, Inc.

-100.0%

-0.10

32.53%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.89%

EBIT Growth (5y)

18.64%

EBIT to Interest (avg)

68.98

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.71

Sales to Capital Employed (avg)

1.87

Tax Ratio

22.72%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

39.52%

ROE (avg)

10.60%

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

1.97

EV to EBIT

47.27

EV to EBITDA

12.21

EV to Capital Employed

4.54

EV to Sales

0.75

PEG Ratio

Dividend Yield

ROCE (Latest)

9.60%

ROE (Latest)

6.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

12What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -7.83% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -76.8 %

PRE-TAX PROFIT(Q)

Highest at JPY 135.57 MM

NET PROFIT(Q)

Highest at JPY 103.08 MM

EPS(Q)

Highest at JPY 41.31

-7What is not working for the Company

NET SALES(HY)

At JPY 810.02 MM has Grown at -20.59%

Here's what is working for Mercury Realtech Innovator, Inc.

Pre-Tax Profit

At JPY 135.57 MM has Grown at 415.29%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 103.08 MM has Grown at 1,155.41%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 135.57 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 103.08 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 41.31

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at -76.8 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -7.83% (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 Mercury Realtech Innovator, Inc.

Net Sales

At JPY 810.02 MM has Grown at -20.59%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Non Operating Income

Highest at JPY 0.93 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income