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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sanyo Chemical Industries Ltd.

JCU Corp.

Nippon Kayaku Co., Ltd.

Nippon Shokubai Co., Ltd.

Mitsui & Co., Ltd.

Nippon Soda Co., Ltd.

Asahi Kasei Corp.

Mitsui Chemicals, Inc.

Kuraray Co., Ltd.

KH Neochem Co., Ltd.

Mitsubishi Chemical Group Corp.

Why is Mitsui & Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.85%

The company has been able to generate a Return on Capital Employed (avg) of 4.85% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

The company is Net-Debt Free
The company has been able to generate a Return on Capital Employed (avg) of 4.85% 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 17.04% and Operating profit at 21.14%

Flat results in Mar 26

ROCE(HY) Lowest at 10.22%
CASH AND EQV(HY) Lowest at JPY 1,841,874 MM
DEBT-EQUITY RATIO (HY) Highest at 53.88 %

With ROCE of 3.28%, it has a expensive valuation with a 1.82 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 60.05%, its profits have fallen by -15.3%

Majority shareholders : Non Institution

Underperformed the market in the last 1 year

The stock has generated a return of 60.05% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.12%

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.

62.16%

852.20

32.33%

Japan Nikkei 225

88.41%

3.12

27.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.04%

EBIT Growth (5y)

21.14%

EBIT to Interest (avg)

5.32

Debt to EBITDA (avg)

4.69

Net Debt to Equity (avg)

0.45

Sales to Capital Employed (avg)

1.12

Tax Ratio

33.33%

Dividend Payout Ratio

32.60%

Pledged Shares

Institutional Holding

0.00%

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

2.30

EV to EBIT

55.32

EV to EBITDA

32.16

EV to Capital Employed

1.82

EV to Sales

1.73

PEG Ratio

Dividend Yield

ROCE (Latest)

3.28%

ROE (Latest)

10.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

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 5.68

INTEREST COVERAGE RATIO(Q)

Highest at 427.54

DIVIDEND PAYOUT RATIO(Y)

Highest at 76.87%

RAW MATERIAL COST(Y)

Fallen by -7.45% (YoY

-5What is not working for the Company

ROCE(HY)

Lowest at 10.22%

CASH AND EQV(HY)

Lowest at JPY 1,841,874 MM

DEBT-EQUITY RATIO (HY)

Highest at 53.88 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 12.38 times

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

Interest Coverage Ratio

Highest at 427.54

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 5.68 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 76.87%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -7.45% (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 96,175 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Here's what is not working for Mitsui & Co., Ltd.

Cash and Eqv

Lowest at JPY 1,841,874 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 53.88 %

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 12.38 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio