MITSUI E&S Co., Ltd. (7003) 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

MODEC, Inc.

Takeuchi Mfg. Co., Ltd.

TADANO Ltd.

Hitachi Construction Machinery Co., Ltd.

Yamabiko Corp.

Komatsu Ltd.

MITSUI E&S Co., Ltd.

Kyokuto Kaihatsu Kogyo Co., Ltd.

Aichi Corp.

Nisshinbo Holdings, Inc.

Kubota Corp.

Why is MITSUI E&S Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.34%

The company has been able to generate a Return on Capital Employed (avg) of 4.34% signifying low profitability per unit of total capital (equity and debt)

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

Poor long term growth as Net Sales has grown by an annual rate of -16.72% over the last 5 years
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 4.34% signifying low profitability per unit of total capital (equity and debt)

Healthy long term growth as Operating profit has grown by an annual rate 18.86%

With a growth in Net Sales of 3.84%, the company declared Very Positive results in Dec 25

OPERATING CASH FLOW(Y) Highest at JPY 39,551 MM
NET PROFIT(HY) At JPY 19,541.66 MM has Grown at 113.99%
INTEREST COVERAGE RATIO(Q) Highest at 3,788.37

With ROCE of 9.87%, it has a attractive valuation with a 1.31 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 216.75%, its profits have risen by 60.1% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to MITSUI E&S Co., Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is MITSUI E&S Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

MITSUI E&S Co., Ltd.

216.75%

950.47

68.06%

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)

-16.72%

EBIT Growth (5y)

18.86%

EBIT to Interest (avg)

1.76

Debt to EBITDA (avg)

17.27

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

1.10

Tax Ratio

1.40%

Dividend Payout Ratio

5.19%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

4.34%

ROE (avg)

12.90%

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

1.43

EV to EBIT

13.26

EV to EBITDA

9.66

EV to Capital Employed

1.31

EV to Sales

0.97

PEG Ratio

0.08

Dividend Yield

0.02%

ROCE (Latest)

9.87%

ROE (Latest)

28.48%

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 Bullish

Bullish

OBV

No Trend

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 39,551 MM

NET PROFIT(HY)

At JPY 19,541.66 MM has Grown at 113.99%

INTEREST COVERAGE RATIO(Q)

Highest at 3,788.37

PRE-TAX PROFIT(Q)

Highest at JPY 12,625 MM

RAW MATERIAL COST(Y)

Fallen by -50.21% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 16.08 %

OPERATING PROFIT(Q)

Highest at JPY 13,676 MM

-2What is not working for the Company

NET PROFIT(9M)

At JPY 26,755.66 MM has Grown at -31.24%

Here's what is working for MITSUI E&S Co., Ltd.

Operating Cash Flow

Highest at JPY 39,551 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Interest Coverage Ratio

Highest at 3,788.37

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

Highest at JPY 12,625 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 19,541.66 MM has Grown at 113.99%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Operating Profit

Highest at JPY 13,676 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Debt-Equity Ratio

Lowest at 16.08 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -50.21% (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 2,361 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)