Mitsubishi Steel Mfg. Co., Ltd. (5632) 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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Mitsubishi Steel Mfg. Co., Ltd.

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CK San-Etsu Co., Ltd.

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Why is Mitsubishi Steel Mfg. Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

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 5.52% signifying low profitability per unit of shareholders funds

Healthy long term growth as Operating profit has grown by an annual rate 71.93%

NET PROFIT(Q) At JPY 326 MM has Fallen at -53.35%
RAW MATERIAL COST(Y) Grown by 18.85% (YoY)
DEBTORS TURNOVER RATIO(HY) Lowest at 4.72 times

With ROCE of 8.47%, it has a very attractive valuation with a 0.75 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 3.86%, its profits have risen by 469.1% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 3.86% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mitsubishi Steel Mfg. Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

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

Is Mitsubishi Steel Mfg. Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mitsubishi Steel Mfg. Co., Ltd.

3.86%

0.55

39.75%

Japan Nikkei 225

36.73%

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)

6.38%

EBIT Growth (5y)

71.93%

EBIT to Interest (avg)

2.53

Debt to EBITDA (avg)

3.36

Net Debt to Equity (avg)

0.82

Sales to Capital Employed (avg)

1.72

Tax Ratio

34.05%

Dividend Payout Ratio

41.05%

Pledged Shares

Institutional Holding

0.15%

ROCE (avg)

6.18%

ROE (avg)

5.52%

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

0.55

EV to EBIT

8.89

EV to EBITDA

5.46

EV to Capital Employed

0.75

EV to Sales

0.37

PEG Ratio

0.02

Dividend Yield

0.03%

ROCE (Latest)

8.47%

ROE (Latest)

7.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

4What is working for the Company

ROCE(HY)

Highest at 5.64%

DEBT-EQUITY RATIO (HY)

Lowest at 73.96 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.71 times

-10What is not working for the Company

NET PROFIT(Q)

At JPY 326 MM has Fallen at -53.35%

RAW MATERIAL COST(Y)

Grown by 18.85% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.72 times

NET SALES(Q)

Lowest at JPY 36,526 MM

OPERATING PROFIT(Q)

Lowest at JPY 1,674 MM

PRE-TAX PROFIT(Q)

At JPY 890 MM has Fallen at -27.32%

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

Debt-Equity Ratio

Lowest at 73.96 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 4.71 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 Steel Mfg. Co., Ltd.

Net Profit

At JPY 326 MM has Fallen at -53.35%

over average net sales of the previous four periods of JPY 698.77 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 36,526 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Sales

At JPY 36,526 MM has Fallen at -8.11%

over average net sales of the previous four periods of JPY 39,748.75 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 1,674 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Pre-Tax Profit

At JPY 890 MM has Fallen at -27.32%

over average net sales of the previous four periods of JPY 1,224.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Debtors Turnover Ratio

Lowest at 4.72 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 18.85% (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