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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Mitachi Co., Ltd.

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Why is Mitachi Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 10.41%

Healthy long term growth as Operating profit has grown by an annual rate 37.61%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 44.90

The company has declared negative results in Feb'2026 after 5 consecutive positive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 1,808.3
RAW MATERIAL COST(Y) Grown by 7.79% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 55.7 %

With ROE of 13.41%, it has a very attractive valuation with a 1.00 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 44.71%, its profits have risen by 80.5% ; the PEG ratio of the company is 0.1

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Underperformed the market in the last 1 year

The stock has generated a return of 44.71% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 69.64%

Real-Time Research Report

Verdict Report

How much should you hold?

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, Low Return

Absolute

Risk Adjusted

Volatility

Mitachi Co., Ltd.

44.71%

1.60

36.48%

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)

29.59%

EBIT Growth (5y)

37.61%

EBIT to Interest (avg)

44.90

Debt to EBITDA (avg)

0.63

Net Debt to Equity (avg)

0.47

Sales to Capital Employed (avg)

3.12

Tax Ratio

27.13%

Dividend Payout Ratio

28.17%

Pledged Shares

Institutional Holding

ROCE (avg)

15.27%

ROE (avg)

10.41%

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

1.00

EV to EBIT

8.62

EV to EBITDA

8.07

EV to Capital Employed

1.00

EV to Sales

0.21

PEG Ratio

0.09

Dividend Yield

ROCE (Latest)

11.62%

ROE (Latest)

13.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

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

3What is working for the Company

NET SALES(9M)

At JPY 88,169.72 MM has Grown at 27.91%

CASH AND EQV(HY)

Highest at JPY 9,939.08 MM

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,808.3

RAW MATERIAL COST(Y)

Grown by 7.79% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 55.7 %

INTEREST(Q)

Highest at JPY 34.25 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.08 %

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

Net Sales

At JPY 88,169.72 MM has Grown at 27.91%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 9,939.08 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

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

Interest

At JPY 34.25 MM has Grown at 16.04%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,808.3

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 34.25 MM

in the last five periods and Increased by 16.04% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 2.08 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 55.7 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 7.79% (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