Micreed Co., Ltd. (7687) 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

Jade Group, Inc.

Kurashicom, Inc.

Vega corporation Co., Ltd.

RenetJapanGroup, Inc.

Raccoon Holdings, Inc.

Micreed Co., Ltd.

Koukandekirukun, Inc.

Mandarake, Inc.

Hamee Corp.

MarketEnterprise Co., Ltd.

PATH Corp.

Why is Micreed Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Net Sales has grown by an annual rate of 19.31% and Operating profit at 45.87%

Flat results in Mar 26

ROCE(HY) Lowest at 18.48%
OPERATING PROFIT(Q) Lowest at JPY 32 MM
OPERATING PROFIT MARGIN(Q) Lowest at 1.7 %

With ROE of 17.82%, it has a attractive valuation with a 1.84 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 -5.67%, its profits have risen by 13.9% ; the PEG ratio of the company is 0.8

Below par performance in long term as well as near term

Along with generating -5.67% 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 Micreed Co., Ltd. should be less than 10%
Overall Portfolio exposure to E-Retail/ E-Commerce should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in E-Retail/ E-Commerce)

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

Is Micreed Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Micreed Co., Ltd.

-5.67%

0.29

26.44%

Japan Nikkei 225

75.22%

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)

19.31%

EBIT Growth (5y)

45.87%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.66

Sales to Capital Employed (avg)

4.88

Tax Ratio

29.51%

Dividend Payout Ratio

20.19%

Pledged Shares

Institutional Holding

ROCE (avg)

44.32%

ROE (avg)

10.14%

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

1.84

EV to EBIT

4.43

EV to EBITDA

3.87

EV to Capital Employed

3.72

EV to Sales

0.25

PEG Ratio

0.76

Dividend Yield

ROCE (Latest)

83.84%

ROE (Latest)

17.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 129.28%

CASH AND EQV(HY)

Highest at JPY 2,278 MM

DEBT-EQUITY RATIO (HY)

Lowest at -71.79 %

DIVIDEND PER SHARE(HY)

Highest at JPY 8.56

-7What is not working for the Company

ROCE(HY)

Lowest at 18.48%

OPERATING PROFIT(Q)

Lowest at JPY 32 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.7 %

PRE-TAX PROFIT(Q)

Lowest at JPY 15 MM

NET PROFIT(Q)

Lowest at JPY 22 MM

EPS(Q)

Lowest at JPY 3.22

Here's what is working for Micreed Co., Ltd.

Cash and Eqv

Highest at JPY 2,278 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -71.79 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend per share

Highest at JPY 8.56

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 129.28%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

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

Operating Profit

Lowest at JPY 32 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 1.7 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 15 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 22 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 3.22

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)