Mitsubishi HC Capital Inc. (8593) 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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Mitsubishi HC Capital Inc.

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Why is Mitsubishi HC Capital Inc. ?

Strong Long Term Fundamental Strength with a 17.70% CAGR growth in Net Sales

Healthy long term growth as Net Sales has grown by an annual rate of 17.70%

With ROE of 7.08%, it has a very attractive valuation with a 1.12 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 23.47%, its profits have risen by 9% ; the PEG ratio of the company is 1.8
At the current price, the company has a high dividend yield of 0

Majority shareholders : Non Institution

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Mitsubishi HC Capital Inc. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

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

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

Is Mitsubishi HC Capital Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mitsubishi HC Capital Inc.

23.99%

1.28

20.12%

Japan Nikkei 225

81.96%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.70%

EBIT Growth (5y)

15.29%

EBIT to Interest (avg)

21.27

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

30.68%

Dividend Payout Ratio

42.47%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

15.85%

ROE (avg)

7.35%

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

1.12

EV to EBIT

9.80

EV to EBITDA

3.18

EV to Capital Employed

1.14

EV to Sales

0.88

PEG Ratio

1.79

Dividend Yield

ROCE (Latest)

11.62%

ROE (Latest)

7.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

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

3What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 0.39

DIVIDEND PAYOUT RATIO(Y)

Highest at 126.54%

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 5,697.21

RAW MATERIAL COST(Y)

Grown by 6.72% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 24.16 times

INTEREST(Q)

Highest at JPY 2,620 MM

NET PROFIT(Q)

At JPY 32,396.77 MM has Fallen at -29.22%

EPS(Q)

Lowest at JPY 18.93

Here's what is working for Mitsubishi HC Capital Inc.

Dividend per share

Highest at JPY 0.39 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 126.54%

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 Mitsubishi HC Capital Inc.

Interest

At JPY 2,620 MM has Grown at 16.29%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 5,697.21

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 2,620 MM

in the last five periods and Increased by 16.29% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 32,396.77 MM has Fallen at -29.22%

over average net sales of the previous four periods of JPY 45,772.64 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 18.93

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 24.16 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 6.72% (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