Mitachi Co., Ltd. (3321) 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

Mitachi Co., Ltd.

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Forval Corp.

TOYO Corp.

PC Depot Corp.

Why is Mitachi Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 9.87%

Healthy long term growth as Operating profit has grown by an annual rate 13.57%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 42.52

Positive results in May 25

NET SALES(Q) At JPY 29,247.44 MM has Grown at 49.77%
NET PROFIT(HY) At JPY 999.73 MM has Grown at 93.34%
CASH AND EQV(HY) Highest at JPY 8,723.01 MM

With ROE of 9.97%, it has a very attractive valuation with a 0.62 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 54.70%, its profits have risen by 38.8% ; the PEG ratio of the company is 0.2

Market Beating Performance

The stock has generated a return of 54.70% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Mitachi Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Mitachi Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Mitachi Co., Ltd.

54.7%

2.13

32.00%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.76%

EBIT Growth (5y)

13.57%

EBIT to Interest (avg)

44.90

Debt to EBITDA (avg)

0.63

Net Debt to Equity (avg)

0.53

Sales to Capital Employed (avg)

2.78

Tax Ratio

27.13%

Dividend Payout Ratio

28.17%

Pledged Shares

Institutional Holding

ROCE (avg)

15.27%

ROE (avg)

9.87%

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

0.62

EV to EBIT

9.50

EV to EBITDA

8.72

EV to Capital Employed

0.75

EV to Sales

0.23

PEG Ratio

0.16

Dividend Yield

ROCE (Latest)

7.92%

ROE (Latest)

9.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Bullish

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

22What is working for the Company

NET SALES(Q)

At JPY 29,247.44 MM has Grown at 49.77%

NET PROFIT(HY)

At JPY 999.73 MM has Grown at 93.34%

CASH AND EQV(HY)

Highest at JPY 8,723.01 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 7.44%

DEBTORS TURNOVER RATIO(HY)

Highest at 8.99%

-16What is not working for the Company

OPERATING PROFIT MARGIN(Q)

Lowest at 2.11 %

RAW MATERIAL COST(Y)

Grown by 62.22% (YoY

INTEREST(Q)

Highest at JPY 30.88 MM

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

Net Sales

At JPY 29,247.44 MM has Grown at 49.77%

over average net sales of the previous four periods of JPY 19,528.38 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (JPY MM)

Net Profit

At JPY 999.73 MM has Grown at 93.34%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 8,723.01 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 7.44%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 8.99%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 61.81 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 61.81 MM has Grown at 61.64%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

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

Interest

At JPY 30.88 MM has Grown at 12.33%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 2.11 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Interest

Highest at JPY 30.88 MM

in the last five periods and Increased by 12.33% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 62.22% (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