Why is Mitsubishi Paper Mills Ltd. ?
1
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)
2
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of -1.99% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 3.85% signifying low profitability per unit of shareholders funds
3
With a fall in Net Sales of -12.47%, the company declared Very Negative results in Dec 25
- PRE-TAX PROFIT(Q) At JPY -223 MM has Fallen at -103.48%
- NET PROFIT(Q) At JPY -303 MM has Fallen at -108.31%
- ROCE(HY) Lowest at -0.12%
4
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 16.52%, its profits have fallen by -21.5%
- At the current price, the company has a high dividend yield of 0.1
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?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Mitsubishi Paper Mills Ltd.
16.52%
-0.12
39.66%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality key factors
Factor
Value
Sales Growth (5y)
-1.99%
EBIT Growth (5y)
18.22%
EBIT to Interest (avg)
1.82
Debt to EBITDA (avg)
8.62
Net Debt to Equity (avg)
0.77
Sales to Capital Employed (avg)
1.12
Tax Ratio
46.98%
Dividend Payout Ratio
15.13%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
1.38%
ROE (avg)
3.85%
Valuation Key Factors 
Factor
Value
P/E Ratio
5
Industry P/E
Price to Book Value
0.33
EV to EBIT
20.65
EV to EBITDA
8.61
EV to Capital Employed
0.62
EV to Sales
0.54
PEG Ratio
NA
Dividend Yield
0.08%
ROCE (Latest)
3.02%
ROE (Latest)
6.73%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-28What is not working for the Company
PRE-TAX PROFIT(Q)
At JPY -223 MM has Fallen at -103.48%
NET PROFIT(Q)
At JPY -303 MM has Fallen at -108.31%
ROCE(HY)
Lowest at -0.12%
INTEREST COVERAGE RATIO(Q)
Lowest at 113.64
RAW MATERIAL COST(Y)
Grown by 38.81% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.35 times
NET SALES(Q)
Lowest at JPY 38,738 MM
OPERATING PROFIT(Q)
Lowest at JPY 200 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 0.52 %
Here's what is not working for Mitsubishi Paper Mills Ltd.
Pre-Tax Profit
At JPY -223 MM has Fallen at -103.48%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY -303 MM has Fallen at -108.31%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest Coverage Ratio
Lowest at 113.64
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales
Lowest at JPY 38,738 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Net Sales
Fallen at -12.47%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Operating Profit
Lowest at JPY 200 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 0.52 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Inventory Turnover Ratio
Lowest at 3.35 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 38.81% (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






