Mitsui & Co., Ltd. (8031) 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

JCU Corp.

Sanyo Chemical Industries Ltd.

Mitsui & Co., Ltd.

Asahi Kasei Corp.

Nippon Shokubai Co., Ltd.

Nippon Kayaku Co., Ltd.

Mitsui Chemicals, Inc.

KH Neochem Co., Ltd.

Nippon Soda Co., Ltd.

Mitsubishi Chemical Group Corp.

Kuraray Co., Ltd.

Why is Mitsui & Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.82%

The company has been able to generate a Return on Capital Employed (avg) of 4.82% signifying low profitability per unit of total capital (equity and debt)

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 Capital Employed (avg) of 4.82% signifying low profitability per unit of total capital (equity and debt)

Healthy long term growth as Net Sales has grown by an annual rate of 16.32% and Operating profit at 9.50%

The company has declared Negative results for the last 9 consecutive quarters

INTEREST(HY) At JPY 120,447 MM has Grown at 33.03%
NET PROFIT(HY) At JPY 450,516.84 MM has Grown at -32.09%
ROCE(HY) Lowest at 10.52%

With ROCE of 3.51%, it has a very attractive valuation with a 1.11 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 40.56%, its profits have fallen by -17.2%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mitsui & Co., Ltd. should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

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

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

Is Mitsui & Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Mitsui & Co., Ltd.

40.56%

984.69

26.95%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.32%

EBIT Growth (5y)

9.50%

EBIT to Interest (avg)

5.32

Debt to EBITDA (avg)

4.69

Net Debt to Equity (avg)

0.51

Sales to Capital Employed (avg)

1.15

Tax Ratio

33.33%

Dividend Payout Ratio

32.60%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

4.85%

ROE (avg)

14.33%

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

1.16

EV to EBIT

31.47

EV to EBITDA

17.65

EV to Capital Employed

1.10

EV to Sales

0.86

PEG Ratio

Dividend Yield

ROCE (Latest)

3.51%

ROE (Latest)

12.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -6% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 13.44%

DEBTORS TURNOVER RATIO(HY)

Highest at 6.16%

-18What is not working for the Company

INTEREST(HY)

At JPY 120,447 MM has Grown at 33.03%

NET PROFIT(HY)

At JPY 450,516.84 MM has Grown at -32.09%

ROCE(HY)

Lowest at 10.52%

NET SALES(Q)

Lowest at JPY 3,299,943 MM

PRE-TAX PROFIT(Q)

At JPY 114,246 MM has Fallen at -32.5%

Here's what is working for Mitsui & Co., Ltd.

Inventory Turnover Ratio

Highest at 13.44%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 6.16%

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 -6% (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 Mitsui & Co., Ltd.

Interest

At JPY 120,447 MM has Grown at 33.03%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 3,299,943 MM has Fallen at -9.98%

over average net sales of the previous four periods of JPY 3,665,655 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Net Profit

At JPY 450,516.84 MM has Grown at -32.09%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 3,299,943 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 114,246 MM has Fallen at -32.5%

over average net sales of the previous four periods of JPY 169,243.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)