Morinaga & Co., Ltd. (2201) 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

Nissin Foods Holdings Co., Ltd.

Fuji Oil Holdings, Inc.

Toyo Suisan Kaisha, Ltd.

Morinaga & Co., Ltd.

Kikkoman Corp.

Yamazaki Baking Co., Ltd.

Ajinomoto Co., Inc.

Meiji Holdings Co., Ltd.

Kagome Co., Ltd.

CALBEE, Inc.

House Foods Group, Inc.

Why is Morinaga & Co., Ltd. ?

High Management Efficiency with a high ROE of 13.64%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 1.85% and Operating profit at 0.06% over the last 5 years

Flat results in Jun 25

INTEREST(HY) At JPY 60 MM has Grown at 15.38%
CASH AND EQV(HY) Lowest at JPY 55,497 MM
DEBT-EQUITY RATIO (HY) Highest at -0.35 %

With ROE of 14.12%, it has a very attractive valuation with a 1.65 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 -6.64%, its profits have risen by 10.8% ; the PEG ratio of the company is 1
At the current price, the company has a high dividend yield of 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.64% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Morinaga & Co., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Morinaga & Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Morinaga & Co., Ltd.

-6.64%

389.55

17.35%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.85%

EBIT Growth (5y)

0.06%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

1.46

Tax Ratio

26.51%

Dividend Payout Ratio

29.87%

Pledged Shares

Institutional Holding

0.06%

ROCE (avg)

18.52%

ROE (avg)

13.64%

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

1.65

EV to EBIT

9.60

EV to EBITDA

6.55

EV to Capital Employed

1.71

EV to Sales

0.89

PEG Ratio

0.98

Dividend Yield

0.01%

ROCE (Latest)

17.81%

ROE (Latest)

14.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

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

4What is working for the Company

ROCE(HY)

Highest at 14.06%

RAW MATERIAL COST(Y)

Fallen by 0.2% (YoY

OPERATING PROFIT(Q)

Highest at JPY 9,549 MM

-9What is not working for the Company

INTEREST(HY)

At JPY 60 MM has Grown at 15.38%

CASH AND EQV(HY)

Lowest at JPY 55,497 MM

DEBT-EQUITY RATIO (HY)

Highest at -0.35 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 4%

Here's what is working for Morinaga & Co., Ltd.

Operating Profit

Highest at JPY 9,549 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Raw Material Cost

Fallen by 0.2% (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 Morinaga & Co., Ltd.

Interest

At JPY 60 MM has Grown at 15.38%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 55,497 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -0.35 %

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

Inventory Turnover Ratio

Lowest at 4%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio