ScoreWhy is Murakami Corp. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Operating profit has grown by an annual rate 4.75% of over the last 5 years
3
Flat results in Dec 25
- INTEREST(Q) At JPY 4 MM has Grown at 300%
- RAW MATERIAL COST(Y) Grown by 12.91% (YoY)
- OPERATING PROFIT MARGIN(Q) Lowest at 11.41 %
4
With ROE of 7.78%, it has a very attractive valuation with a 0.85 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 15.13%, its profits have fallen by -0.2%
- At the current price, the company has a high dividend yield of 0
5
Underperformed the market in the last 1 year
- The stock has generated a return of 15.13% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Murakami Corp. should be less than 10%
- Overall Portfolio exposure to Auto Components & Equipments should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Murakami Corp. for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Murakami Corp.
15.13%
1.08
29.87%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.05%
EBIT Growth (5y)
4.75%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.53
Sales to Capital Employed (avg)
1.20
Tax Ratio
29.82%
Dividend Payout Ratio
40.89%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
17.08%
ROE (avg)
7.27%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
0.85
EV to EBIT
3.13
EV to EBITDA
2.13
EV to Capital Employed
0.67
EV to Sales
0.25
PEG Ratio
NA
Dividend Yield
0.01%
ROCE (Latest)
21.39%
ROE (Latest)
7.78%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
CASH AND EQV(HY)
Highest at JPY 93,248 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 10.58 times
DEBTORS TURNOVER RATIO(HY)
Highest at 6.79 times
-5What is not working for the Company
INTEREST(Q)
At JPY 4 MM has Grown at 300%
RAW MATERIAL COST(Y)
Grown by 12.91% (YoY
OPERATING PROFIT MARGIN(Q)
Lowest at 11.41 %
PRE-TAX PROFIT(Q)
Lowest at JPY 2,550 MM
Here's what is working for Murakami Corp.
Cash and Eqv
Highest at JPY 93,248 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 10.58 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 6.79 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Murakami Corp.
Interest
At JPY 4 MM has Grown at 300%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit Margin
Lowest at 11.41 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 2,550 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Raw Material Cost
Grown by 12.91% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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