Muto Seiko Co. (7927) 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

Nippon Pillar Packing Co., Ltd.

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Kuriyama Holdings Corp.

Chiyoda Integre Co., Ltd.

Sanko Gosei Ltd.

Teikoku Sen-I Co., Ltd.

Muto Seiko Co.

Fukoku Co., Ltd.

LEC, Inc. (Japan)

BALMUDA, Inc.

Why is Muto Seiko Co. ?

Poor Management Efficiency with a low ROE of 8.18%

The company has been able to generate a Return on Equity (avg) of 8.18% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 8.88% CAGR growth in Net Sales over the last 5 years

The company has been able to generate a Return on Equity (avg) of 8.18% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.88% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At JPY 34.52 MM has Grown at 15.06%
RAW MATERIAL COST(Y) Grown by 16.78% (YoY)
OPERATING PROFIT MARGIN(Q) Lowest at 9.33 %

With ROE of 9.51%, it has a very attractive valuation with a 0.83 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 36.21%, its profits have risen by 6.5% ; the PEG ratio of the company is 1.3
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Muto Seiko Co. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Muto Seiko Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Muto Seiko Co.

36.21%

0.69

33.48%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.88%

EBIT Growth (5y)

17.00%

EBIT to Interest (avg)

40.73

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

1.13

Tax Ratio

26.31%

Dividend Payout Ratio

40.21%

Pledged Shares

Institutional Holding

ROCE (avg)

12.74%

ROE (avg)

8.18%

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

0.83

EV to EBIT

5.40

EV to EBITDA

3.42

EV to Capital Employed

0.78

EV to Sales

0.43

PEG Ratio

1.34

Dividend Yield

ROCE (Latest)

14.41%

ROE (Latest)

9.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

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

2What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 5.44 times

NET SALES(Q)

Highest at JPY 7,939.33 MM

-11What is not working for the Company

INTEREST(HY)

At JPY 34.52 MM has Grown at 15.06%

RAW MATERIAL COST(Y)

Grown by 16.78% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 9.33 %

NET PROFIT(Q)

Lowest at JPY 315.95 MM

EPS(Q)

Lowest at JPY 45.47

Here's what is working for Muto Seiko Co.

Net Sales

Highest at JPY 7,939.33 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debtors Turnover Ratio

Highest at 5.44 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 Muto Seiko Co.

Interest

At JPY 34.52 MM has Grown at 15.06%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 9.33 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at JPY 315.95 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 45.47

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 16.78% (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