Murata Manufacturing Co. Ltd. (6981) 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

Kanematsu Corp.

Sumida Corp.

Koa Corp.

Alps Alpine Co., Ltd.

Nippon Electric Glass Co., Ltd.

Kohoku Kogyo Co. Ltd.

Mitsui High-tec, Inc.

Canon Electronics, Inc.

Mimasu Semiconductor Industry Co., Ltd.

Murata Manufacturing Co. Ltd.

Cosel Co., Ltd.

Why is Murata Manufacturing Co. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 2.59% over the last 5 years

OPERATING CASH FLOW(Y) Lowest at JPY 424,350 MM
ROCE(HY) Lowest at 7.26%
INTEREST(Q) At JPY 517 MM has Grown at inf%

With ROE of 9.03%, it has a very attractive valuation with a 1.56 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 48.33%, its profits have risen by 29.2% ; the PEG ratio of the company is 0.5

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 Electronics & Appliances)

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

Is Murata Manufacturing Co. Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Murata Manufacturing Co. Ltd.

48.33%

141.02

46.85%

Japan Nikkei 225

40.96%

1.35

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.59%

EBIT Growth (5y)

3.00%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

0.65

Tax Ratio

23.47%

Dividend Payout Ratio

45.56%

Pledged Shares

Institutional Holding

0.08%

ROCE (avg)

17.09%

ROE (avg)

11.05%

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

1.56

EV to EBIT

11.77

EV to EBITDA

7.37

EV to Capital Employed

1.74

EV to Sales

1.96

PEG Ratio

0.52

Dividend Yield

ROCE (Latest)

14.77%

ROE (Latest)

9.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.46% (YoY

CASH AND EQV(HY)

Highest at JPY 1,164,593 MM

DEBT-EQUITY RATIO (HY)

Lowest at -19.93 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.09 times

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 424,350 MM

ROCE(HY)

Lowest at 7.26%

INTEREST(Q)

At JPY 517 MM has Grown at inf%

PRE-TAX PROFIT(Q)

At JPY 49,529 MM has Fallen at -37.12%

NET PROFIT(Q)

Lowest at JPY 24,969 MM

EPS(Q)

Lowest at JPY 13.75

Here's what is working for Murata Manufacturing Co. Ltd.

Cash and Eqv

Highest at JPY 1,164,593 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -19.93 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.09 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -3.46% (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 Murata Manufacturing Co. Ltd.

Net Profit

At JPY 24,969 MM has Fallen at -57.66%

over average net sales of the previous four periods of JPY 58,969.25 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 517 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Cash Flow

Lowest at JPY 424,350 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Pre-Tax Profit

At JPY 49,529 MM has Fallen at -37.12%

over average net sales of the previous four periods of JPY 78,766.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 24,969 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 13.75

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)