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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

TBK Co., Ltd.

Univance Corp.

Tokyo Radiator Manufacturing Co., Ltd.

Metalart Corp.

NITTAN Corp.

Muro Corp.

Nihon Plast Co., Ltd.

Yasunaga Corp.

GMB Corp.

Kasai Kogyo Co., Ltd.

SNT Corp.

Why is Muro Corp. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 41.72

Poor long term growth as Net Sales has grown by an annual rate of 1.09% and Operating profit at -9.93% over the last 5 years

Flat results in Jun 25

NET PROFIT(9M) At JPY 275.48 MM has Grown at -62.78%
PRE-TAX PROFIT(Q) At JPY 98.62 MM has Fallen at -61.15%
ROCE(HY) Lowest at 0.74%

With ROE of 2.76%, it has a very attractive valuation with a 0.34 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 6.91%, its profits have fallen by -53.7%

Underperformed the market in the last 1 year

The stock has generated a return of 6.91% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

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.

6.6%

-0.34

21.52%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.09%

EBIT Growth (5y)

-9.93%

EBIT to Interest (avg)

41.72

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

0.96

Tax Ratio

42.99%

Dividend Payout Ratio

55.91%

Pledged Shares

Institutional Holding

ROCE (avg)

6.84%

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

0.34

EV to EBIT

1.87

EV to EBITDA

0.63

EV to Capital Employed

0.09

EV to Sales

0.06

PEG Ratio

Dividend Yield

ROCE (Latest)

4.69%

ROE (Latest)

2.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

5What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 5,244.16

RAW MATERIAL COST(Y)

Fallen by -6.5% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.51%

NET SALES(Q)

Highest at JPY 5,738.47 MM

-16What is not working for the Company

NET PROFIT(9M)

At JPY 275.48 MM has Grown at -62.78%

PRE-TAX PROFIT(Q)

At JPY 98.62 MM has Fallen at -61.15%

ROCE(HY)

Lowest at 0.74%

Here's what is working for Muro Corp.

Interest Coverage Ratio

Highest at 5,244.16

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at JPY 5,738.47 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debtors Turnover Ratio

Highest at 4.51%

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 -6.5% (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.

Pre-Tax Profit

At JPY 98.62 MM has Fallen at -61.15%

over average net sales of the previous four periods of JPY 253.82 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 15.81 MM has Fallen at -89.63%

over average net sales of the previous four periods of JPY 152.48 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)