ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Muromachi Chemicals, Inc. ?
1
High Management Efficiency with a high ROCE of 14.23%
2
High Debt Company with a Debt to Equity ratio (avg) at times
- High Debt Company with a Debt to Equity ratio (avg) at times
3
Healthy long term growth as Net Sales has grown by an annual rate of 90.08% and Operating profit at 61.29%
4
Negative results in May 25
- ROCE(HY) Lowest at 10.22%
- INTEREST COVERAGE RATIO(Q) Lowest at 932.8
- DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
5
With ROCE of 17.95%, it has a very attractive valuation with a 1.38 Enterprise value to Capital Employed
- 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 5.93%, its profits have risen by 98% ; the PEG ratio of the company is 0.1
6
Underperformed the market in the last 1 year
- The stock has generated a return of 5.93% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 27.10%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Muromachi Chemicals, Inc. should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Muromachi Chemicals, Inc. for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Muromachi Chemicals, Inc.
5.05%
0.52
44.23%
Japan Nikkei 225
25.16%
1.05
25.73%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
90.08%
EBIT Growth (5y)
61.29%
EBIT to Interest (avg)
19.40
Debt to EBITDA (avg)
1.19
Net Debt to Equity (avg)
0.16
Sales to Capital Employed (avg)
1.65
Tax Ratio
31.07%
Dividend Payout Ratio
41.38%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
14.97%
ROE (avg)
16.83%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
1.44
EV to EBIT
7.69
EV to EBITDA
5.95
EV to Capital Employed
1.38
EV to Sales
0.58
PEG Ratio
0.10
Dividend Yield
NA
ROCE (Latest)
17.95%
ROE (Latest)
15.40%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at JPY 4.88
-24What is not working for the Company
ROCE(HY)
Lowest at 10.22%
INTEREST COVERAGE RATIO(Q)
Lowest at 932.8
DIVIDEND PAYOUT RATIO(Y)
Lowest at 0%
RAW MATERIAL COST(Y)
Grown by 12.69% (YoY
INTEREST(Q)
Highest at JPY 8.96 MM
OPERATING PROFIT(Q)
Lowest at JPY 83.56 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 4.61 %
PRE-TAX PROFIT(Q)
Lowest at JPY 73.48 MM
NET PROFIT(Q)
Fallen at -45.01%
EPS(Q)
Lowest at JPY -1.97
Here's what is working for Muromachi Chemicals, Inc.
Dividend per share
Highest at JPY 4.88
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Depreciation
Highest at JPY 47.95 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Muromachi Chemicals, Inc.
Interest
At JPY 8.96 MM has Grown at 29.39%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 932.8
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Pre-Tax Profit
At JPY 73.48 MM has Fallen at -56.36%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Interest
Highest at JPY 8.96 MM
in the last five periods and Increased by 29.39% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit
Lowest at JPY 83.56 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 4.61 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 73.48 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Fallen at -45.01%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY -1.97
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Dividend Payout Ratio
Lowest at 0%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Grown by 12.69% (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
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