Why is Murata Manufacturing Co. Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 2.59% over the last 5 years
- INTEREST COVERAGE RATIO(Q) Lowest at 1,966.11
- INTEREST(Q) Highest at JPY 5,261 MM
2
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 31.25%, its profits have risen by 29.2% ; the PEG ratio of the company is 0.5
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.
28.47%
136.64
41.68%
Japan Nikkei 225
38.88%
1.45
26.59%
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)
0
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
0
Institutional Holding
0.08%
ROCE (avg)
17.09%
ROE (avg)
11.05%
Valuation Key Factors 
Factor
Value
P/E Ratio
17
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
NA
ROCE (Latest)
14.77%
ROE (Latest)
9.03%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Bullish
Technical Movement
2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -3.34% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 5.82%
-9What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 1,966.11
INTEREST(Q)
Highest at JPY 5,261 MM
Here's what is working for Murata Manufacturing Co. Ltd.
Debtors Turnover Ratio
Highest at 5.82%
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 -3.34% (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.
Interest
At JPY 5,261 MM has Grown at 82.67%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 1,966.11
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 5,261 MM
in the last five periods and Increased by 82.67% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






