ScoreWhy is MonotaRO Co., Ltd. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 27.20%
- Healthy long term growth as Net Sales has grown by an annual rate of 16.05% and Operating profit at 18.12%
- Company has very low debt and has enough cash to service the debt requirements
2
Flat results in Mar 26
- INTEREST COVERAGE RATIO(Q) Lowest at 21,054.29
- RAW MATERIAL COST(Y) Grown by 6.47% (YoY)
- INTEREST(Q) Highest at JPY 70 MM
3
With ROE of 28.96%, it has a expensive valuation with a 7.49 Price to Book Value
- 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 -24.91%, its profits have risen by 23.4% ; the PEG ratio of the company is 1.1
4
Majority shareholders : FIIs
5
Underperformed the market in the last 1 year
- Even though the market (Japan Nikkei 225) has generated returns of 59.79% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -24.91% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to MonotaRO Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Trading & Distributors should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is MonotaRO Co., Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
MonotaRO Co., Ltd.
-28.35%
0.40
41.56%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.05%
EBIT Growth (5y)
18.12%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.27
Sales to Capital Employed (avg)
2.68
Tax Ratio
30.99%
Dividend Payout Ratio
50.56%
Pledged Shares
0
Institutional Holding
1.24%
ROCE (avg)
43.88%
ROE (avg)
27.20%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
Price to Book Value
7.49
EV to EBIT
17.44
EV to EBITDA
15.38
EV to Capital Employed
8.49
EV to Sales
2.42
PEG Ratio
1.11
Dividend Yield
NA
ROCE (Latest)
48.68%
ROE (Latest)
28.96%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
ROCE(HY)
Highest at 30.58%
INVENTORY TURNOVER RATIO(HY)
Highest at 10.93 times
NET SALES(Q)
Highest at JPY 95,582 MM
OPERATING PROFIT(Q)
Highest at JPY 14,738 MM
PRE-TAX PROFIT(Q)
Highest at JPY 13,019 MM
CASH AND EQV(HY)
Highest at JPY 83,459 MM
-16What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 21,054.29
RAW MATERIAL COST(Y)
Grown by 6.47% (YoY
INTEREST(Q)
Highest at JPY 70 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 15.42 %
Here's what is working for MonotaRO Co., Ltd.
Net Sales
Highest at JPY 95,582 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 14,738 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (JPY MM)
Pre-Tax Profit
Highest at JPY 13,019 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Inventory Turnover Ratio
Highest at 10.93 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Sales
At JPY 95,582 MM has Grown at 20.83%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Cash and Eqv
Highest at JPY 83,459 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for MonotaRO Co., Ltd.
Interest Coverage Ratio
Lowest at 21,054.29 and Fallen
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
At JPY 70 MM has Grown at 12.9%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 70 MM
in the last five periods and Increased by 12.9% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit Margin
Lowest at 15.42 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Raw Material Cost
Grown by 6.47% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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