Muro Corp. (7264) 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

Metalart Corp.

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Nihon Plast Co., Ltd.

Muro Corp.

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Kasai Kogyo Co., Ltd.

Univance Corp.

Yasunaga Corp.

TBK Co., Ltd.

SNT Corp.

Why is Muro Corp. ?

Poor Management Efficiency with a low ROE of 4.52%

The company has been able to generate a Return on Equity (avg) of 4.52% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 6.67% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 4.52% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.97% and Operating profit at 6.67% over the last 5 years

Positive results in Mar 26

NET PROFIT(Q) At JPY 256.41 MM has Grown at 227.14%
RAW MATERIAL COST(Y) Fallen by -16.8% (YoY)
DEBTORS TURNOVER RATIO(HY) Highest at 4.62 times

With ROE of 1.41%, it has a very attractive valuation with a 0.37 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 13.52%, its profits have fallen by -64.3%

Underperformed the market in the last 1 year

The stock has generated a return of 13.52% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 61.01%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Muro 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 Muro Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Muro Corp.

7.75%

0.06

19.71%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.97%

EBIT Growth (5y)

6.67%

EBIT to Interest (avg)

35.65

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

0.95

Tax Ratio

40.38%

Dividend Payout Ratio

38.91%

Pledged Shares

Institutional Holding

ROCE (avg)

6.80%

ROE (avg)

4.52%

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

0.37

EV to EBIT

0.76

EV to EBITDA

0.34

EV to Capital Employed

0.06

EV to Sales

0.04

PEG Ratio

Dividend Yield

ROCE (Latest)

7.53%

ROE (Latest)

1.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

15What is working for the Company

NET PROFIT(Q)

At JPY 256.41 MM has Grown at 227.14%

RAW MATERIAL COST(Y)

Fallen by -16.8% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.62 times

PRE-TAX PROFIT(Q)

At JPY 353.92 MM has Grown at 72.02%

-3What is not working for the Company

INTEREST(Q)

At JPY 12.22 MM has Grown at 11.44%

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.41 times

Here's what is working for Muro Corp.

Net Profit

At JPY 256.41 MM has Grown at 227.14%

over average net sales of the previous four periods of JPY 78.38 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 353.92 MM has Grown at 72.02%

over average net sales of the previous four periods of JPY 205.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Debtors Turnover Ratio

Highest at 4.62 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -16.8% (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 Muro Corp.

Interest

At JPY 12.22 MM has Grown at 11.44%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 7.41 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio