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

Kohsai Co., Ltd.

NEW ART HOLDINGS Co., Ltd.

Seiko Group Corp.

Crossfor Co., Ltd.

Nagahori Corp.

Nihon Seimitsu Co., Ltd.

Mitsubishi Pencil Co., Ltd.

Yondoshi Holdings, Inc.

The Sailor Pen Co., Ltd.

Festaria Holdings Co., Ltd.

Estelle Holdings Co., Ltd.

Why is Mitsubishi Pencil Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 90.55

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(HY) At JPY 224 MM has Grown at 82.11%
ROCE(HY) Lowest at 5.42%
DEBT-EQUITY RATIO (HY) Highest at -16.62 %

With ROE of 4.88%, it has a fair valuation with a 1.02 Price to Book Value

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 25.27%, its profits have fallen by -41.5%
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 25.27% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 81.96%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mitsubishi Pencil Co., Ltd. should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)

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

Is Mitsubishi Pencil Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mitsubishi Pencil Co., Ltd.

27.0%

0.14

28.00%

Japan Nikkei 225

81.96%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.23%

EBIT Growth (5y)

12.03%

EBIT to Interest (avg)

90.55

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

0.61

Tax Ratio

30.07%

Dividend Payout Ratio

45.51%

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

1.02

EV to EBIT

12.30

EV to EBITDA

7.87

EV to Capital Employed

1.02

EV to Sales

1.33

PEG Ratio

Dividend Yield

0.09%

ROCE (Latest)

8.33%

ROE (Latest)

4.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

7What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 1.55 times

OPERATING PROFIT(Q)

Highest at JPY 4,856 MM

OPERATING PROFIT MARGIN(Q)

Highest at 19.65 %

PRE-TAX PROFIT(Q)

Highest at JPY 3,538 MM

NET PROFIT(Q)

Highest at JPY 2,464 MM

EPS(Q)

Highest at JPY 45.55

-13What is not working for the Company

INTEREST(HY)

At JPY 224 MM has Grown at 82.11%

ROCE(HY)

Lowest at 5.42%

DEBT-EQUITY RATIO (HY)

Highest at -16.62 %

RAW MATERIAL COST(Y)

Grown by 6.04% (YoY

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

Operating Profit

Highest at JPY 4,856 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 19.65 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 3,538 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 2,464 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 2,464 MM has Grown at 68.88%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 45.55

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 1.55 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Interest

At JPY 224 MM has Grown at 82.11%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -16.62 % 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

Raw Material Cost

Grown by 6.04% (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