Musashi Seimitsu Industry Co., Ltd. (7220) 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

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TOKAI RIKA CO., LTD.

Stanley Electric Co., Ltd.

NHK Spring Co., Ltd.

Mitsuboshi Belting Ltd.

Musashi Seimitsu Industry Co., Ltd.

NTN Corp.

Why is Musashi Seimitsu Industry Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 22.04% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 6.73% signifying low profitability per unit of shareholders funds

Positive results in Jun 25

RAW MATERIAL COST(Y) Fallen by -2.86% (YoY)
CASH AND EQV(HY) Highest at JPY 72,196 MM

With ROCE of 11.10%, 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 -22.92%, its profits have risen by 9.6% ; the PEG ratio of the company is 1.9

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 29.35% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -22.92% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Musashi Seimitsu Industry Co., Ltd. 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 Musashi Seimitsu Industry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Musashi Seimitsu Industry Co., Ltd.

-23.03%

1.28

65.75%

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)

7.99%

EBIT Growth (5y)

22.04%

EBIT to Interest (avg)

9.46

Debt to EBITDA (avg)

2.23

Net Debt to Equity (avg)

0.55

Sales to Capital Employed (avg)

1.60

Tax Ratio

41.58%

Dividend Payout Ratio

42.09%

Pledged Shares

Institutional Holding

ROCE (avg)

7.13%

ROE (avg)

6.73%

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

1.59

EV to EBIT

12.45

EV to EBITDA

6.35

EV to Capital Employed

1.38

EV to Sales

0.71

PEG Ratio

1.86

Dividend Yield

ROCE (Latest)

11.10%

ROE (Latest)

9.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.86% (YoY

CASH AND EQV(HY)

Highest at JPY 72,196 MM

-6What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.01%

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.2%

NET SALES(Q)

Lowest at JPY 83,076 MM

OPERATING PROFIT(Q)

Lowest at JPY 7,919 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.53 %

NET PROFIT(Q)

Fallen at -40.65%

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

Cash and Eqv

Highest at JPY 72,196 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -2.86% (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 Musashi Seimitsu Industry Co., Ltd.

Net Sales

Lowest at JPY 83,076 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 7,919 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 9.53 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Fallen at -40.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 5.01%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 7.2%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio