Mitsubishi Pencil Co., Ltd. (7976) 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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Why is Mitsubishi Pencil Co., Ltd. ?

With a fall in Net Sales of -0.68%, the company declared Very Negative results in Dec 25

ROCE(HY) Lowest at 4.67%
DEBT-EQUITY RATIO (HY) Highest at -16 %
INTEREST COVERAGE RATIO(Q) Lowest at 3,315.11

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 36.73% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -8.77% returns

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 Gems, Jewellery And Watches)

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

Is Mitsubishi Pencil Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mitsubishi Pencil Co., Ltd.

-100.0%

0.01

29.93%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.69%

EBIT Growth (5y)

13.02%

EBIT to Interest (avg)

90.55

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

0.62

Tax Ratio

30.07%

Dividend Payout Ratio

22.46%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

13.05%

ROE (avg)

7.15%

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

0.99

EV to EBIT

8.96

EV to EBITDA

6.28

EV to Capital Employed

0.99

EV to Sales

1.15

PEG Ratio

1.10

Dividend Yield

0.10%

ROCE (Latest)

11.08%

ROE (Latest)

8.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

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

3What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 4.58

DIVIDEND PAYOUT RATIO(Y)

Highest at 62.95%

-23What is not working for the Company

ROCE(HY)

Lowest at 4.67%

DEBT-EQUITY RATIO (HY)

Highest at -16 %

INTEREST COVERAGE RATIO(Q)

Lowest at 3,315.11

RAW MATERIAL COST(Y)

Grown by 12.23% (YoY

CASH AND EQV(HY)

Lowest at JPY 69,449 MM

INTEREST(Q)

Highest at JPY 139 MM

NET PROFIT(Q)

Fallen at -39.76%

Here's what is working for Mitsubishi Pencil Co., Ltd.

Dividend per share

Highest at JPY 4.58 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 62.95%

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 Pencil Co., Ltd.

Interest

At JPY 139 MM has Grown at 69.51%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 3,315.11

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -16 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at JPY 139 MM

in the last five periods and Increased by 69.51% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

Fallen at -39.76%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Cash and Eqv

Lowest at JPY 69,449 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 12.23% (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