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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

NEW ART HOLDINGS Co., Ltd.

Seiko Group Corp.

Yondoshi Holdings, Inc.

Nihon Seimitsu Co., Ltd.

Festaria Holdings Co., Ltd.

Nagahori Corp.

Crossfor Co., Ltd.

Mitsubishi Pencil Co., Ltd.

Kohsai Co., Ltd.

Estelle Holdings Co., Ltd.

The Sailor Pen Co., Ltd.

Why is Mitsubishi Pencil Co., Ltd. ?

With a fall in Net Sales of -7.62%, the company declared Very Negative results in Jun 25

INTEREST(HY) At JPY 87 MM has Grown at 85.11%
PRE-TAX PROFIT(Q) At JPY 2,675 MM has Fallen at -59.94%
ROCE(HY) Lowest at 6.05%

Below par performance in long term as well as near term

Along with generating -10.51% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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.

-9.55%

-0.36

32.90%

Japan Nikkei 225

28.54%

1.14

25.81%

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

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

6What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 4.8

INTEREST COVERAGE RATIO(Q)

Highest at 11,041.18

DIVIDEND PAYOUT RATIO(Y)

Highest at 84.26%

RAW MATERIAL COST(Y)

Fallen by -1.25% (YoY

-23What is not working for the Company

INTEREST(HY)

At JPY 87 MM has Grown at 85.11%

PRE-TAX PROFIT(Q)

At JPY 2,675 MM has Fallen at -59.94%

ROCE(HY)

Lowest at 6.05%

NET PROFIT(Q)

At JPY 1,969.42 MM has Fallen at -56.54%

CASH AND EQV(HY)

Lowest at JPY 66,475 MM

DEBT-EQUITY RATIO (HY)

Highest at -18.14 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.41%

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

Interest Coverage Ratio

Highest at 11,041.18

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at JPY 4.8 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 84.26%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -1.25% (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

Depreciation

Highest at JPY 1,509 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 1,509 MM has Grown at 31.33%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Mitsubishi Pencil Co., Ltd.

Interest

At JPY 87 MM has Grown at 85.11%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 2,675 MM has Fallen at -59.94%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,969.42 MM has Fallen at -56.54%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Cash and Eqv

Lowest at JPY 66,475 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -18.14 %

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

Inventory Turnover Ratio

Lowest at 1.41%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio