Monex Group, Inc. (8698) 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

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Yamaguchi Financial Group, Inc.

Suruga Bank Ltd.

Monex Group, Inc.

SBI Sumishin Net Bank, Ltd.

Why is Monex Group, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 8.62%

Poor long term growth as Operating profit has grown by an annual rate of 6.22%

PRE-TAX PROFIT(Q) At JPY 1,976 MM has Grown at 220.78%
NET PROFIT(Q) At JPY 1,855 MM has Grown at 226.75%
OPERATING CASH FLOW(Y) Highest at JPY 6,669 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -35.02%, its profits have fallen by -147%

Below par performance in long term as well as near term

Along with generating -35.02% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Monex Group, Inc. should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

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

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

Is Monex Group, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Monex Group, Inc.

-36.31%

-0.04

44.16%

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)

7.20%

EBIT Growth (5y)

6.22%

EBIT to Interest (avg)

3.79

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

51.53%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

ROE (avg)

8.62%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.45

EV to EBIT

-18.58

EV to EBITDA

-18.58

EV to Capital Employed

0.82

EV to Sales

-3.32

PEG Ratio

Dividend Yield

ROCE (Latest)

-4.40%

ROE (Latest)

-6.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

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

9What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 1,976 MM has Grown at 220.78%

NET PROFIT(Q)

At JPY 1,855 MM has Grown at 226.75%

OPERATING CASH FLOW(Y)

Highest at JPY 6,669 MM

RAW MATERIAL COST(Y)

Fallen by 0.14% (YoY

-17What is not working for the Company

NET PROFIT(HY)

At JPY 2,600 MM has Grown at -83.44%

ROCE(HY)

Lowest at -5.18%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.07%

CASH AND EQV(HY)

Lowest at JPY 834,795 MM

DEBT-EQUITY RATIO (HY)

Highest at -299.49 %

INTEREST(Q)

Highest at JPY 2,747 MM

Here's what is working for Monex Group, Inc.

Pre-Tax Profit

At JPY 1,976 MM has Grown at 220.78%

over average net sales of the previous four periods of JPY -1,636 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,855 MM has Grown at 226.75%

over average net sales of the previous four periods of JPY -1,463.5 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Cash Flow

Highest at JPY 6,669 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Raw Material Cost

Fallen by 0.14% (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

At JPY 1,196 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Monex Group, Inc.

Interest

At JPY 2,747 MM has Grown at 120.47%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 0.07% and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at JPY 2,747 MM

in the last five periods and Increased by 120.47% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 834,795 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -299.49 %

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