Mitsubishi Paper Mills Ltd. (3864) 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

Nippon Kodoshi Corp.

Daio Paper Corp.

Tomoegawa Corp.

Nichiban Co., Ltd.

Rengo Co., Ltd.

Tokushu Tokai Paper Co., Ltd.

Hokuetsu Corp.

Nippon Paper Industries Co., Ltd.

Nippon Filcon Co., Ltd.

Chuetsu Pulp & Paper Co., Ltd.

Mitsubishi Paper Mills Ltd.

Why is Mitsubishi Paper Mills Ltd. ?

Poor Management Efficiency with a low ROCE of 1.38%

The company has been able to generate a Return on Capital Employed (avg) of 1.38% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -0.78% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 3.85% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

NET SALES(HY) At JPY 78,432 MM has Grown at -10.41%
NET PROFIT(HY) At JPY 4,073.9 MM has Grown at -29.66%
ROCE(HY) Lowest at 2.02%

With ROCE of 0.74%, it has a risky valuation with a 0.69 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 70.61%, its profits have fallen by -89.9%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 70.61% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Mitsubishi Paper Mills Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mitsubishi Paper Mills Ltd.

70.61%

0.72

33.37%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.78%

EBIT Growth (5y)

22.59%

EBIT to Interest (avg)

1.82

Debt to EBITDA (avg)

8.62

Net Debt to Equity (avg)

0.77

Sales to Capital Employed (avg)

1.11

Tax Ratio

46.98%

Dividend Payout Ratio

15.13%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

1.38%

ROE (avg)

3.85%

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

0.46

EV to EBIT

92.53

EV to EBITDA

14.57

EV to Capital Employed

0.69

EV to Sales

0.61

PEG Ratio

Dividend Yield

ROCE (Latest)

0.74%

ROE (Latest)

0.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

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

DEBT-EQUITY RATIO (HY)

Lowest at 58.19 %

PRE-TAX PROFIT(Q)

Highest at JPY 4,627 MM

NET PROFIT(Q)

Highest at JPY 4,376.9 MM

EPS(Q)

Highest at JPY 90.1

-12What is not working for the Company

NET SALES(HY)

At JPY 78,432 MM has Grown at -10.41%

NET PROFIT(HY)

At JPY 4,073.9 MM has Grown at -29.66%

ROCE(HY)

Lowest at 2.02%

INTEREST(Q)

At JPY 210 MM has Grown at 19.32%

CASH AND EQV(HY)

Lowest at JPY 13,255 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.23 times

Here's what is working for Mitsubishi Paper Mills Ltd.

Pre-Tax Profit

Highest at JPY 4,627 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 4,376.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 4,376.9 MM has Grown at 104.01%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 90.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at 58.19 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Mitsubishi Paper Mills Ltd.

Interest

At JPY 210 MM has Grown at 19.32%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 78,432 MM has Grown at -10.41%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Cash and Eqv

Lowest at JPY 13,255 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 3.23 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio