Musashi Co., Ltd. (7521) 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

Daitron Co., Ltd.

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Nishikawa Keisoku Co., Ltd.

Takachiho Koheki Co., Ltd.

Daiichi Jitsugyo Co., Ltd.

TOYO Corp.

Forval Corp.

Musashi Co., Ltd.

Hibino Corp.

Marubun Corp.

PC Depot Corp.

Why is Musashi Co., Ltd. ?

Poor Management Efficiency with a low ROE of 4.48%

The company has been able to generate a Return on Equity (avg) of 4.48% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 4.48%

Poor long term growth as Net Sales has grown by an annual rate of 3.75% over the last 5 years
The company has been able to generate a Return on Equity (avg) of 4.48% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.75% over the last 5 years

With a fall in Net Sales of -25.85%, the company declared Very Negative results in Jun 26

INTEREST(HY) At JPY 33 MM has Grown at 22.22%
INTEREST COVERAGE RATIO(Q) Lowest at 618.75
RAW MATERIAL COST(Y) Grown by 21.79% (YoY)

With ROE of 4.94%, it has a fair valuation with a 0.61 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 36.76%, its profits have fallen by -47.3%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Musashi Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Musashi Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Musashi Co., Ltd.

34.19%

2.08

27.67%

Japan Nikkei 225

58.07%

1.98

29.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.75%

EBIT Growth (5y)

56.74%

EBIT to Interest (avg)

57.49

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.55

Sales to Capital Employed (avg)

1.00

Tax Ratio

37.59%

Dividend Payout Ratio

18.48%

Pledged Shares

Institutional Holding

ROCE (avg)

18.86%

ROE (avg)

4.48%

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

0.61

EV to EBIT

0.90

EV to EBITDA

0.80

EV to Capital Employed

0.17

EV to Sales

0.07

PEG Ratio

Dividend Yield

ROCE (Latest)

18.48%

ROE (Latest)

4.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

5What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -53.72 %

CASH AND EQV(HY)

Highest at JPY 46,955 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 8.15 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.09 times

-31What is not working for the Company

INTEREST(HY)

At JPY 33 MM has Grown at 22.22%

INTEREST COVERAGE RATIO(Q)

Lowest at 618.75

RAW MATERIAL COST(Y)

Grown by 21.79% (YoY

NET SALES(Q)

Lowest at JPY 7,390 MM

OPERATING PROFIT(Q)

Lowest at JPY 99 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.34 %

PRE-TAX PROFIT(Q)

Lowest at JPY 76 MM

NET PROFIT(Q)

Lowest at JPY -32 MM

EPS(Q)

Lowest at JPY -4.7

Here's what is working for Musashi Co., Ltd.

Debt-Equity Ratio

Lowest at -53.72 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Cash and Eqv

Highest at JPY 46,955 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 8.15 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.09 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Musashi Co., Ltd.

Interest

At JPY 33 MM has Grown at 22.22%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 7,390 MM has Fallen at -25.85%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 76 MM has Fallen at -93.58%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -32 MM has Fallen at -104.08%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 618.75

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 7,390 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 99 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 1.34 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 76 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -32 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -4.7

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 21.79% (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