Morito Co., Ltd. (9837) 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

Mizuno Corp.

GOLDWIN INC.

Onward Holdings Co., Ltd.

TSI Holdings Co., Ltd.

Shoei Co. Ltd. (7839)

HONEYS Holdings Co., Ltd.

Morito Co., Ltd.

Wacoal Holdings Corp.

Gunze Ltd.

World Co., Ltd.

Descente Ltd.

Why is Morito Co., Ltd. ?

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

Flat results in May 25

INTEREST(HY) At JPY 9.89 MM has Grown at 24.39%
DIVIDEND PAYOUT RATIO(Y) Lowest at 49.19%
DEBT-EQUITY RATIO (HY) Highest at -16.21 %

With ROE of 6.62%, it has a very attractive valuation with a 1.06 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 9.56%, its profits have risen by 15.6% ; the PEG ratio of the company is 1
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 9.56% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Morito Co., Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is Morito Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Morito Co., Ltd.

9.08%

0.62

22.86%

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)

1.25%

EBIT Growth (5y)

10.68%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

1.21

Tax Ratio

26.78%

Dividend Payout Ratio

64.87%

Pledged Shares

Institutional Holding

ROCE (avg)

7.82%

ROE (avg)

4.77%

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

1.06

EV to EBIT

11.98

EV to EBITDA

8.33

EV to Capital Employed

1.08

EV to Sales

0.69

PEG Ratio

1.03

Dividend Yield

0.07%

ROCE (Latest)

9.03%

ROE (Latest)

6.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

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

11What is working for the Company

ROCE(HY)

Highest at 8.77%

DIVIDEND PER SHARE(HY)

Highest at JPY 4.46

INTEREST COVERAGE RATIO(Q)

Highest at 25,675.98

RAW MATERIAL COST(Y)

Fallen by -7.72% (YoY

NET SALES(Q)

Highest at JPY 13,643.54 MM

OPERATING PROFIT(Q)

Highest at JPY 1,307.16 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.58 %

EPS(Q)

Highest at JPY 67.08

-10What is not working for the Company

INTEREST(HY)

At JPY 9.89 MM has Grown at 24.39%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 49.19%

DEBT-EQUITY RATIO (HY)

Highest at -16.21 %

Here's what is working for Morito Co., Ltd.

Interest Coverage Ratio

Highest at 25,675.98

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at JPY 4.46 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 13,643.54 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,307.16 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 9.58 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

EPS

Highest at JPY 67.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -7.72% (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 354.03 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 Morito Co., Ltd.

Interest

At JPY 9.89 MM has Grown at 24.39%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -16.21 %

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

Dividend Payout Ratio

Lowest at 49.19%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)