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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kikkoman Corp.

Toyo Suisan Kaisha, Ltd.

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Kagome Co., Ltd.

Yamazaki Baking Co., Ltd.

CALBEE, Inc.

Fuji Oil Holdings, Inc.

Nissin Foods Holdings Co., Ltd.

Morinaga & Co., Ltd.

House Foods Group, Inc.

Meiji Holdings Co., Ltd.

Why is Morinaga & Co., Ltd. ?

Weak Long Term Fundamental Strength with a 2.30% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 2.96% and Operating profit at 2.30% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 8,456.07
CASH AND EQV(HY) Lowest at JPY 51,896 MM
DEBT-EQUITY RATIO (HY) Highest at 10.75 %

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.99% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Morinaga & Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Morinaga & Co., Ltd.

-2.99%

307.25

21.67%

Japan Nikkei 225

60.14%

2.05

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.96%

EBIT Growth (5y)

2.30%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

1.49

Tax Ratio

29.19%

Dividend Payout Ratio

30.80%

Pledged Shares

Institutional Holding

0.06%

ROCE (avg)

18.09%

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

1.62

EV to EBIT

10.00

EV to EBITDA

6.77

EV to Capital Employed

1.64

EV to Sales

0.92

PEG Ratio

0.33

Dividend Yield

ROCE (Latest)

16.38%

ROE (Latest)

14.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

RAW MATERIAL COST(Y)

Fallen by -1.04% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 7.98 times

NET SALES(Q)

Highest at JPY 63,617 MM

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 8,456.07

CASH AND EQV(HY)

Lowest at JPY 51,896 MM

DEBT-EQUITY RATIO (HY)

Highest at 10.75 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.52 times

INTEREST(Q)

Highest at JPY 107 MM

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

Net Sales

Highest at JPY 63,617 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debtors Turnover Ratio

Highest at 7.98 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -1.04% (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

Highest at JPY 2,924 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Morinaga & Co., Ltd.

Interest

At JPY 107 MM has Grown at 224.24%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 8,456.07

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 107 MM

in the last five periods and Increased by 224.24% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 51,896 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 10.75 %

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 3.52 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio