MTI Ltd. (9438) 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

BuySell Technologies Co., Ltd.

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AirTrip Corp.

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LITALICO, Inc. (7366)

Digital Arts Inc.

istyle, Inc.

MTI Ltd.

Proto Corp.

giftee, Inc.

Why is MTI Ltd. ?

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 2.11% and Operating profit at 1.44% over the last 5 years

Flat results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 19,088.03
INTEREST(Q) Highest at JPY 5.37 MM
OPERATING PROFIT(Q) Lowest at JPY 1,025.03 MM

With ROE of 12.53%, it has a very attractive valuation with a 3.16 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 -43.30%, its profits have risen by 29.8% ; the PEG ratio of the company is 0.8

Below par performance in long term as well as near term

Along with generating -43.30% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to MTI Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is MTI Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

MTI Ltd.

-43.3%

-0.41

40.45%

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)

2.11%

EBIT Growth (5y)

1.44%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.78

Sales to Capital Employed (avg)

1.55

Tax Ratio

29.67%

Dividend Payout Ratio

39.49%

Pledged Shares

Institutional Holding

0.12%

ROCE (avg)

36.98%

ROE (avg)

5.03%

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

3.16

EV to EBIT

13.40

EV to EBITDA

8.78

EV to Capital Employed

11.04

EV to Sales

1.37

PEG Ratio

0.79

Dividend Yield

ROCE (Latest)

82.40%

ROE (Latest)

12.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.8% (YoY

CASH AND EQV(HY)

Highest at JPY 32,112.06 MM

DEBT-EQUITY RATIO (HY)

Lowest at -89.06 %

-17What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 19,088.03

INTEREST(Q)

Highest at JPY 5.37 MM

OPERATING PROFIT(Q)

Lowest at JPY 1,025.03 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.81 %

NET PROFIT(Q)

At JPY 337.05 MM has Fallen at -33.17%

Here's what is working for MTI Ltd.

Cash and Eqv

Highest at JPY 32,112.06 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -89.06 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -0.8% (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 MTI Ltd.

Interest Coverage Ratio

Lowest at 19,088.03 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At JPY 5.37 MM has Grown at 17.27%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 5.37 MM

in the last five periods and Increased by 17.27% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 1,025.03 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 13.81 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At JPY 337.05 MM has Fallen at -33.17%

over average net sales of the previous four periods of JPY 504.36 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)