Shares in MISUMI Group Inc. do not show any sign of a slowdown in the ascending dynamic. Investors could bet on a continuation of the underlying trend.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
● The company's Refinitiv ESG score, based on a relative ranking of the company within its sector, comes out particularly poor.
Strengths
● The earnings growth currently anticipated by analysts for the coming years is particularly strong.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● Over the past four months, analysts' average price target has been revised upwards significantly.
● Analyst opinion has improved significantly over the past four months.
● Over the past twelve months, analysts' opinions have been strongly revised upwards.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
Weaknesses
● With a 2022 P/E ratio at 34.5 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
● The company is highly valued given the cash flows generated by its activity.
● The company is not the most generous with respect to shareholders' compensation.
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MISUMI Group Inc. is a Japan-based company mainly engaged in the factory automation (FA) business, the mold parts business, and the parts and consumables (MRO) business. The Company has three business segments. The FA segment is engaged in the manufacture and sale of shafts, bushes, linear guides, locating parts, pulleys stages and other standard parts for automatic equipment, as well as the development and provision of automatic positioning modules and various research equipment. The Metal Molding Parts segment is engaged in the development and provision of spring guides, ejector pins, core pins, guides, retainers and other standard mold parts for automotive, electronic and electrical equipment fields, as well as the provision of precision mold parts. The Variation & One-stop by New Alliance (VONA) segment is engaged in the general distribution business, as well as the provision of air pressure parts, piping parts, screws, bolts and other manufacturing materials and MRO products.