The Musashino Bank, Ltd. (8336) 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

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The Musashino Bank, Ltd.

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The Kiyo Bank, Ltd.

SBI Sumishin Net Bank, Ltd.

Why is The Musashino Bank, Ltd. ?

Poor Management Efficiency with a low ROA of 0.12%

The bank has been able to generate a Return on Assets (avg) of 0.12% signifying low profitability per unit of total assets

Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 10.00% signifying inadequate buffers against its risk based assets

Poor long term growth as Net profit has grown by an annual rate of 10.30%
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 10.00% signifying inadequate buffers against its risk based assets
The bank has been able to generate a Return on Assets (avg) of 0.12% signifying low profitability per unit of total assets

Poor long term growth as Net profit has grown by an annual rate of 10.30%

Positive results in Jun 26

ROCE(HY) Highest at 0.29%
NET SALES(Q) Highest at JPY 19,942 MM
CREDIT DEPOSIT RATIO(Q) Highest at 1.64%

With ROA of 0.23%, it has a attractive valuation with a 0.90 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 118.48%, its profits have risen by 17% ; the PEG ratio of the company is 1.1
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 The Musashino Bank, Ltd. should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

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

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

Is The Musashino Bank, Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Musashino Bank, Ltd.

113.17%

-0.22

74.28%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.10%

EBIT Growth (5y)

18.15%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

36.46%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

ROE (avg)

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

0.90

EV to EBIT

6.02

EV to EBITDA

4.66

EV to Capital Employed

0.74

EV to Sales

1.57

PEG Ratio

1.13

Dividend Yield

ROCE (Latest)

12.26%

ROE (Latest)

4.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

15What is working for the Company

ROCE(HY)

Highest at 0.29%

NET SALES(Q)

Highest at JPY 19,942 MM

CREDIT DEPOSIT RATIO(Q)

Highest at 1.64%

NII(Q)

Highest at JPY 15,471 MM

OPERATING PROFIT(Q)

Highest at JPY 6,785 MM

PRE-TAX PROFIT(Q)

Highest at JPY 8,502 MM

-6What is not working for the Company

INTEREST(9M)

At JPY 12,017 MM has Grown at 66.16%

ROCE(HY)

Lowest at 0.29%

Here's what is working for The Musashino Bank, Ltd.

Net Sales

Highest at JPY 19,942 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Credit Deposit Ratio

Highest at 1.64% and Grown

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

MOJO Watch

Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets

Credit Deposit Ratio (%)

NII

Highest at JPY 15,471 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (JPY MM)

Net Sales

At JPY 19,942 MM has Grown at 22.08%

over average net sales of the previous four periods of JPY 16,335.75 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 6,785 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 8,502 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Here's what is not working for The Musashino Bank, Ltd.

Interest

At JPY 12,017 MM has Grown at 66.16%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)