MK Seiko Co., Ltd. (5906) 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

MK Seiko Co., Ltd.

Sukegawa Electric Co., Ltd.

Fuji Seiko Ltd.

Nikkato Corp.

Hamai Industries Ltd.

OKUMURA ENGINEERING Corp.

Kitagawa Seiki Co., Ltd.

Suido Kiko Kaisha, Ltd.

Tomita Co., Ltd.

Miyairi Valve Mfg. Co., Ltd.

Seiwa Electric Mfg. Co., Ltd

Why is MK Seiko Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 46.25

With a growth in Net Sales of 24.23%, the company declared Outstanding results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
ROCE(HY) Highest at 13.05%
PRE-TAX PROFIT(Q) At JPY 103.05 MM has Grown at 143.97%
NET PROFIT(Q) At JPY 154.24 MM has Grown at 187.61%

With ROCE of 14.36%, it has a very attractive valuation with a 0.71 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 50.69%, its profits have risen by 29.3% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to MK Seiko 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 MK Seiko Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

MK Seiko Co., Ltd.

50.69%

2.12

42.74%

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)

2.83%

EBIT Growth (5y)

15.06%

EBIT to Interest (avg)

46.25

Debt to EBITDA (avg)

0.54

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

1.40

Tax Ratio

34.04%

Dividend Payout Ratio

11.02%

Pledged Shares

Institutional Holding

ROCE (avg)

11.44%

ROE (avg)

8.36%

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

0.74

EV to EBIT

4.92

EV to EBITDA

3.94

EV to Capital Employed

0.71

EV to Sales

0.42

PEG Ratio

0.22

Dividend Yield

0.11%

ROCE (Latest)

14.36%

ROE (Latest)

11.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

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

20What is working for the Company

ROCE(HY)

Highest at 13.05%

PRE-TAX PROFIT(Q)

At JPY 103.05 MM has Grown at 143.97%

NET PROFIT(Q)

At JPY 154.24 MM has Grown at 187.61%

DIVIDEND PAYOUT RATIO(Y)

Highest at 262.08%

RAW MATERIAL COST(Y)

Fallen by -7.72% (YoY

CASH AND EQV(HY)

Highest at JPY 10,690.87 MM

DEBT-EQUITY RATIO (HY)

Lowest at -10.05 %

INVENTORY TURNOVER RATIO(HY)

Highest at 3.12 times

DIVIDEND PER SHARE(HY)

Highest at JPY 5.37

NET SALES(Q)

At JPY 6,601.43 MM has Grown at 24.23%

-2What is not working for the Company

INTEREST(9M)

At JPY 24.98 MM has Grown at 7.35%

Here's what is working for MK Seiko Co., Ltd.

Pre-Tax Profit

At JPY 103.05 MM has Grown at 143.97%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 154.24 MM has Grown at 187.61%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 6,601.43 MM has Grown at 24.23%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 10,690.87 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -10.05 %

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 3.12 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 5.37

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 262.08%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -7.72% (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 MK Seiko Co., Ltd.

Interest

At JPY 24.98 MM has Grown at 7.35%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Non Operating Income

Highest at JPY 2.53 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income