ScoreWhy is Morinaga & Co., Ltd. ?
1
High Management Efficiency with a high ROE of 13.64%
2
Company has very low debt and has enough cash to service the debt requirements
3
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
4
Negative results in Mar 26
- INTEREST(HY) At JPY 66 MM has Grown at 13.79%
- DEBT-EQUITY RATIO (HY) Highest at -4.49 %
- CASH AND EQV(HY) Lowest at JPY 50,969 MM
5
With ROE of 14.69%, it has a very attractive valuation with a 1.73 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 11.57%, its profits have risen by 25% ; the PEG ratio of the company is 0.4
- At the current price, the company has a high dividend yield of 0
6
Underperformed the market in the last 1 year
- The stock has generated a return of 11.57% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%
Real-Time Research ReportHow 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.
11.57%
327.19
20.90%
Japan Nikkei 225
75.22%
3.09
27.80%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.96%
EBIT Growth (5y)
2.30%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.09
Sales to Capital Employed (avg)
1.49
Tax Ratio
26.51%
Dividend Payout Ratio
29.87%
Pledged Shares
0
Institutional Holding
0.06%
ROCE (avg)
18.52%
ROE (avg)
13.64%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
1.73
EV to EBIT
10.68
EV to EBITDA
7.24
EV to Capital Employed
1.75
EV to Sales
0.98
PEG Ratio
0.35
Dividend Yield
NA
ROCE (Latest)
16.38%
ROE (Latest)
14.69%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Sideways
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -6.63% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 8.44 times
-19What is not working for the Company
INTEREST(HY)
At JPY 66 MM has Grown at 13.79%
DEBT-EQUITY RATIO
(HY)
Highest at -4.49 %
CASH AND EQV(HY)
Lowest at JPY 50,969 MM
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.64 times
DIVIDEND PER SHARE(HY)
Lowest at JPY 8.44
NET SALES(Q)
At JPY 55,038 MM has Fallen at -5.92%
PRE-TAX PROFIT(Q)
Lowest at JPY 3,628 MM
NET PROFIT(Q)
Lowest at JPY 2,234.43 MM
EPS(Q)
Lowest at JPY 26.33
Here's what is working for Morinaga & Co., Ltd.
Debtors Turnover Ratio
Highest at 8.44 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -6.63% (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 66 MM has Grown at 13.79%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Pre-Tax Profit
At JPY 3,628 MM has Fallen at -45.13%
over average net sales of the previous four periods of JPY 6,611.5 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 2,234.43 MM has Fallen at -54.45%
over average net sales of the previous four periods of JPY 4,905.49 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Debt-Equity Ratio
Highest at -4.49 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Net Sales
At JPY 55,038 MM has Fallen at -5.92%
over average net sales of the previous four periods of JPY 58,501.75 MMMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Pre-Tax Profit
Lowest at JPY 3,628 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 2,234.43 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 26.33
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Cash and Eqv
Lowest at JPY 50,969 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Inventory Turnover Ratio
Lowest at 3.64 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Dividend per share
Lowest at JPY 8.44
in the last five yearsMOJO Watch
Company is distributing lower dividend than previous years
DPS (JPY)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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