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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kitagawa Seiki Co., Ltd.

Suido Kiko Kaisha, Ltd.

Tomita Co., Ltd.

Hamai Industries Ltd.

Seiwa Electric Mfg. Co., Ltd

Nikkato Corp.

OKUMURA ENGINEERING Corp.

MK Seiko Co., Ltd.

Sukegawa Electric Co., Ltd.

Fuji Seiko Ltd.

Miyairi Valve 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

Flat results in Jun 25

INTEREST(HY) At JPY 16.09 MM has Grown at 25.56%
NET SALES(Q) At JPY 6,134.88 MM has Fallen at -12.87%
PRE-TAX PROFIT(Q) At JPY 383.29 MM has Fallen at -50.12%

With ROCE of 12.96%, it has a very attractive valuation with a 0.39 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 18.90%, its profits have fallen by -8.1%
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 18.90% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

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.

16.96%

0.96

36.95%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.00%

EBIT Growth (5y)

18.33%

EBIT to Interest (avg)

46.25

Debt to EBITDA (avg)

0.54

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

1.43

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

0.44

EV to EBIT

3.04

EV to EBITDA

2.31

EV to Capital Employed

0.39

EV to Sales

0.21

PEG Ratio

Dividend Yield

0.11%

ROCE (Latest)

12.96%

ROE (Latest)

8.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

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

DEBT-EQUITY RATIO (HY)

Lowest at -8.83 %

CASH AND EQV(HY)

Highest at JPY 10,229.7 MM

-25What is not working for the Company

INTEREST(HY)

At JPY 16.09 MM has Grown at 25.56%

NET SALES(Q)

At JPY 6,134.88 MM has Fallen at -12.87%

PRE-TAX PROFIT(Q)

At JPY 383.29 MM has Fallen at -50.12%

NET PROFIT(Q)

At JPY 238.26 MM has Fallen at -54.7%

RAW MATERIAL COST(Y)

Grown by 7.94% (YoY

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

Debt-Equity Ratio

Lowest at -8.83 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Cash and Eqv

Highest at JPY 10,229.7 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for MK Seiko Co., Ltd.

Interest

At JPY 16.09 MM has Grown at 25.56%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 6,134.88 MM has Fallen at -12.87%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 383.29 MM has Fallen at -50.12%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 238.26 MM has Fallen at -54.7%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Raw Material Cost

Grown by 7.94% (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