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.

Mitsubishi Paper Mills Ltd.

Chuetsu Pulp & Paper Co., Ltd.

Tomoegawa Corp.

Rengo Co., Ltd.

Tokushu Tokai Paper Co., Ltd.

Nippon Filcon Co., Ltd.

Nichiban Co., Ltd.

Nippon Paper Industries Co., Ltd.

Hokuetsu Corp.

Daio Paper Corp.

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

Poor long term growth as Net Sales has grown by an annual rate of -0.78% over the last 5 years

With a growth in Operating Profit of 927.68%, the company declared Very Positive results in Jun 26

PRE-TAX PROFIT(Q) At JPY 3,222 MM has Grown at 379.44%
NET PROFIT(Q) At JPY 2,251.63 MM has Grown at 270.97%
RAW MATERIAL COST(Y) Fallen by -35.54% (YoY)

With ROCE of 0.74%, it has a attractive valuation with a 0.76 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 64.51%, its profits have fallen by -89.9%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mitsubishi Paper Mills Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

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

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

Is Mitsubishi Paper Mills Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mitsubishi Paper Mills Ltd.

72.13%

1.08

36.46%

Japan Nikkei 225

60.14%

2.04

29.37%

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)

2.37

Debt to EBITDA (avg)

8.41

Net Debt to Equity (avg)

0.77

Sales to Capital Employed (avg)

1.09

Tax Ratio

32.46%

Dividend Payout Ratio

34.60%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

1.41%

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

0.58

EV to EBIT

102.07

EV to EBITDA

16.08

EV to Capital Employed

0.76

EV to Sales

0.67

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

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

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

16What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 3,222 MM has Grown at 379.44%

NET PROFIT(Q)

At JPY 2,251.63 MM has Grown at 270.97%

RAW MATERIAL COST(Y)

Fallen by -35.54% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 61.14 %

DEBTORS TURNOVER RATIO(HY)

Highest at 5.13 times

-3What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 10,401 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.15 times

NET SALES(Q)

Lowest at JPY 38,620 MM

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

Pre-Tax Profit

At JPY 3,222 MM has Grown at 379.44%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 2,251.63 MM has Grown at 270.97%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at 61.14 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 5.13 times

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 -35.54% (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 Paper Mills Ltd.

Net Sales

Lowest at JPY 38,620 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Cash and Eqv

Lowest at JPY 10,401 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 3.15 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio