Mitsubishi Chemical Group Corp. (4188) 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

JCU Corp.

Sanyo Chemical Industries Ltd.

Mitsui & Co., Ltd.

Asahi Kasei Corp.

Nippon Shokubai Co., Ltd.

Nippon Kayaku Co., Ltd.

Mitsui Chemicals, Inc.

KH Neochem Co., Ltd.

Nippon Soda Co., Ltd.

Mitsubishi Chemical Group Corp.

Kuraray Co., Ltd.

Why is Mitsubishi Chemical Group Corp. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 10.64% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 10.64% of over the last 5 years

Negative results in Jun 25

INTEREST(HY) At JPY 30,770 MM has Grown at 14.23%
ROCE(HY) Lowest at 1.23%
NET SALES(Q) Lowest at JPY 880,652 MM

With ROCE of 8.96%, it has a very attractive valuation with a 0.83 Enterprise value to Capital Employed

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 10.85%, its profits have fallen by -38.8%

Underperformed the market in the last 1 year

The stock has generated a return of 10.85% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mitsubishi Chemical Group Corp. should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

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

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

Is Mitsubishi Chemical Group Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Mitsubishi Chemical Group Corp.

11.22%

432.82

27.01%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.24%

EBIT Growth (5y)

10.64%

EBIT to Interest (avg)

7.49

Debt to EBITDA (avg)

3.80

Net Debt to Equity (avg)

0.99

Sales to Capital Employed (avg)

1.13

Tax Ratio

31.59%

Dividend Payout Ratio

101.15%

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

7.30%

ROE (avg)

12.04%

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

0.65

EV to EBIT

9.22

EV to EBITDA

4.87

EV to Capital Employed

0.83

EV to Sales

0.65

PEG Ratio

Dividend Yield

ROCE (Latest)

8.96%

ROE (Latest)

6.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 539,191 MM

RAW MATERIAL COST(Y)

Fallen by -11.17% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.78%

-27What is not working for the Company

INTEREST(HY)

At JPY 30,770 MM has Grown at 14.23%

ROCE(HY)

Lowest at 1.23%

NET SALES(Q)

Lowest at JPY 880,652 MM

NET PROFIT(Q)

At JPY 16,707 MM has Fallen at -57.87%

OPERATING PROFIT(Q)

Lowest at JPY 122,954 MM

PRE-TAX PROFIT(Q)

Fallen at -35.19%

Here's what is working for Mitsubishi Chemical Group Corp.

Operating Cash Flow

Highest at JPY 539,191 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Debtors Turnover Ratio

Highest at 5.78%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -11.17% (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 Mitsubishi Chemical Group Corp.

Net Sales

At JPY 880,652 MM has Fallen at -22.02%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Interest

At JPY 30,770 MM has Grown at 14.23%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 880,652 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Net Profit

At JPY 16,707 MM has Fallen at -57.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit

Lowest at JPY 122,954 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Pre-Tax Profit

Fallen at -35.19%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)