Prima Meat Packers, Ltd. (2281) 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

Nissui Corp.

Itoham Yonekyu Holdings, Inc.

Morinaga Milk Industry Co., Ltd.

Maruha Nichiro Corp.

Marudai Food Co., Ltd.

Starzen Co., Ltd.

Prima Meat Packers, Ltd.

Yakult Honsha Co., Ltd.

NH Foods Ltd.

MEGMILK SNOW BRAND Co., Ltd.

Ezaki Glico Co., Ltd.

Why is Prima Meat Packers, Ltd. ?

High Management Efficiency with a high ROE of 9.13%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 82.47

Poor long term growth as Net Sales has grown by an annual rate of 1.86% and Operating profit at -10.56% over the last 5 years

Negative results in Jun 25

INVENTORY TURNOVER RATIO(HY) Lowest at 11.49%
CASH AND EQV(HY) Lowest at JPY 22,404 MM
DEBT-EQUITY RATIO (HY) Highest at 12.71 %

With ROE of 6.61%, it has a very attractive valuation with a 0.95 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 16.34%, its profits have fallen by -5.9%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 16.34% 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 Prima Meat Packers, Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Prima Meat Packers, Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Prima Meat Packers, Ltd.

15.13%

0.29

22.03%

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)

1.86%

EBIT Growth (5y)

-10.56%

EBIT to Interest (avg)

85.00

Debt to EBITDA (avg)

0.19

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

3.20

Tax Ratio

34.69%

Dividend Payout Ratio

56.82%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

11.90%

ROE (avg)

9.13%

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

0.95

EV to EBIT

13.74

EV to EBITDA

5.98

EV to Capital Employed

0.96

EV to Sales

0.27

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

6.97%

ROE (Latest)

6.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.87% (YoY

-8What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 11.49%

CASH AND EQV(HY)

Lowest at JPY 22,404 MM

DEBT-EQUITY RATIO (HY)

Highest at 12.71 %

INTEREST(Q)

Highest at JPY 40 MM

PRE-TAX PROFIT(Q)

Fallen at -36.16%

Here's what is working for Prima Meat Packers, Ltd.

Raw Material Cost

Fallen by -0.87% (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 Prima Meat Packers, Ltd.

Interest

At JPY 40 MM has Grown at 14.29%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 11.49% and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at JPY 40 MM

in the last five periods and Increased by 14.29% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Fallen at -36.16%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Cash and Eqv

Lowest at JPY 22,404 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 12.71 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio