Mirai Works Inc. (6563) 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

Sportsfield Co., Ltd.

SUS Co., Ltd.

Tsunagu Group Holdings, Inc.

HIRAYAMA Holdings Co. Ltd.

FCE, Inc.

Arbeit-Times Co., Ltd.

Geechs, Inc.

Advantage Risk Management Co., Ltd.

Mirai Works Inc.

Human Creation Holdings, Inc.

GUPPYs, Inc.

Why is Mirai Works Inc. ?

High Management Efficiency with a high ROE of 13.88%

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 21.10%

With a growth in Operating Profit of 15.17%, the company declared Very Positive results in Mar 26

RAW MATERIAL COST(Y) Fallen by -9.3% (YoY)
CASH AND EQV(HY) Highest at JPY 2,964.68 MM
NET SALES(Q) Highest at JPY 2,982.77 MM

With ROE of 12.37%, it has a very expensive valuation with a 2.29 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 -22.11%, its profits have fallen by -52.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -22.11% 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 Mirai Works Inc. should be less than 10%
Overall Portfolio exposure to Diversified Commercial Services should be less than 30%

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

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

Is Mirai Works Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mirai Works Inc.

-100.0%

-1.54

29.84%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.10%

EBIT Growth (5y)

26.01%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.88

Sales to Capital Employed (avg)

7.90

Tax Ratio

63.71%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

161.17%

ROE (avg)

13.88%

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

2.29

EV to EBIT

7.41

EV to EBITDA

5.79

EV to Capital Employed

335.72

EV to Sales

0.16

PEG Ratio

Dividend Yield

ROCE (Latest)

4532.56%

ROE (Latest)

12.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

10What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -9.3% (YoY

CASH AND EQV(HY)

Highest at JPY 2,964.68 MM

NET SALES(Q)

Highest at JPY 2,982.77 MM

OPERATING PROFIT(Q)

Highest at JPY 147.44 MM

OPERATING PROFIT MARGIN(Q)

Highest at 4.94 %

PRE-TAX PROFIT(Q)

Highest at JPY 138.17 MM

NET PROFIT(Q)

At JPY 84.17 MM has Grown at 94.57%

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.33 times

Here's what is working for Mirai Works Inc.

Pre-Tax Profit

At JPY 138.17 MM has Grown at 120.84%

over average net sales of the previous four periods of JPY 62.57 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Sales

Highest at JPY 2,982.77 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 147.44 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 4.94 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 138.17 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 84.17 MM has Grown at 94.57%

over average net sales of the previous four periods of JPY 43.26 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 2,964.68 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -9.3% (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 Mirai Works Inc.

Debtors Turnover Ratio

Lowest at 7.33 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio