Stock Analysis
Morinaga&Co And Two Other Undiscovered Japanese Stocks With Strong Fundamentals
Reviewed by Simply Wall St
Amid a backdrop of fluctuating global markets, Japan's recent economic performance has been marked by a robust rebound in industrial production and a complex currency scenario impacting export-focused industries. As investors navigate these shifting dynamics, identifying stocks with strong fundamentals becomes crucial for those looking to tap into potential growth opportunities within the Japanese market.
Top 10 Undiscovered Gems With Strong Fundamentals In Japan
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| Business Brain Showa-Ota | 0.05% | 7.50% | 59.43% | ★★★★★★ |
| System ResearchLtd | 13.69% | 10.06% | 14.89% | ★★★★★★ |
| Uchida Yoko | 6.26% | 7.83% | 16.58% | ★★★★★★ |
| Tsubakimoto Kogyo | NA | 1.22% | -0.23% | ★★★★★★ |
| NJS | NA | 4.22% | 1.83% | ★★★★★★ |
| NPR-Riken | 13.26% | 6.00% | 32.17% | ★★★★★☆ |
| Denyo | 4.86% | 3.76% | 1.84% | ★★★★★☆ |
| CAC Holdings | 14.97% | -0.57% | 5.02% | ★★★★☆☆ |
| Toyo Kanetsu K.K | 45.07% | 2.00% | 11.94% | ★★★★☆☆ |
| GENOVA | 6.23% | 24.87% | 31.14% | ★★★★☆☆ |
Here we highlight a subset of our preferred stocks from the screener.
Morinaga&Co (TSE:2201)
Simply Wall St Value Rating: ★★★★★☆
Overview: Morinaga & Co., Ltd. is a diversified food company engaged in the manufacturing, purchasing, and selling of confectioneries, foodstuffs, frozen desserts, and health products both domestically and internationally, with a market capitalization of approximately ¥235.71 billion.
Operations: The company generates revenue primarily through the sale of goods, with a gross profit margin of 40.63% as of the latest reporting period. Significant operating expenses include sales and marketing, which consistently represent a major portion of total expenditures.
Morinaga&Co., a lesser-known yet intriguing Japanese company, has demonstrated robust financial health and strategic acumen. Recently, the company repurchased 940,000 shares for ¥2.37 billion, underscoring its commitment to enhancing shareholder value. Financially, Morinaga is trading at 58.8% below its estimated fair value with earnings forecasted to grow by 7% annually. Notably, its earnings surged by 50.7% over the past year, outpacing the industry's growth of 34.6%, highlighting its potential as an undiscovered gem in Japan’s market landscape.
- Take a closer look at Morinaga&Co's potential here in our health report.
Gain insights into Morinaga&Co's past trends and performance with our Past report.
Morinaga&Co (TSE:2201)
Simply Wall St Value Rating: ★★★★★☆
Overview: Morinaga & Co., Ltd. is a diversified food company engaged in the manufacturing, purchasing, and selling of confectioneries, foodstuffs, frozen desserts, and health products both domestically and internationally, with a market capitalization of approximately ¥235.71 billion.
Operations: The company generates revenue primarily through the sale of goods, with a gross profit margin of 40.63% as of the latest reporting period. Significant operating expenses include sales and marketing, which consistently represent a major portion of total expenditures.
Morinaga&Co., a lesser-known yet intriguing Japanese company, has demonstrated robust financial health and strategic acumen. Recently, the company repurchased 940,000 shares for ¥2.37 billion, underscoring its commitment to enhancing shareholder value. Financially, Morinaga is trading at 58.8% below its estimated fair value with earnings forecasted to grow by 7% annually. Notably, its earnings surged by 50.7% over the past year, outpacing the industry's growth of 34.6%, highlighting its potential as an undiscovered gem in Japan’s market landscape.
- Take a closer look at Morinaga&Co's potential here in our health report.
Gain insights into Morinaga&Co's past trends and performance with our Past report.
Hioki E.E (TSE:6866)
Simply Wall St Value Rating: ★★★★★★
Overview: Hioki E.E. Corporation operates globally, specializing in the development, manufacturing, sales, and servicing of electrical measuring instruments with a market capitalization of ¥104.67 billion.
Operations: The company generates revenue primarily through the sale of its products, with a gross profit margin that has shown an upward trend over the observed periods, reaching 46.87% by mid-2024. Costs are largely driven by COGS, which accounted for ¥20.32 billion of the total expenses as of July 2024.
Hioki E.E. Corporation, a lesser-known yet promising entity within Japan's electronic sector, has recently announced a share repurchase program, planning to buy back up to 200,000 shares for ¥1 billion. This initiative underscores its commitment to shareholder returns and strategic capital management. Financially robust, Hioki boasts earnings that have outpaced the industry with a growth of 4% over the past year against an industry decline of 0.7%. Trading at 17.2% below its estimated fair value and with no debt concerns, Hioki presents as an undervalued opportunity with high-quality earnings and positive free cash flow dynamics.
- Click here and access our complete health analysis report to understand the dynamics of Hioki E.E.
Understand Hioki E.E's track record by examining our Past report.
Hioki E.E (TSE:6866)
Simply Wall St Value Rating: ★★★★★★
Overview: Hioki E.E. Corporation operates globally, specializing in the development, manufacturing, sales, and servicing of electrical measuring instruments with a market capitalization of ¥104.67 billion.
Operations: The company generates revenue primarily through the sale of its products, with a gross profit margin that has shown an upward trend over the observed periods, reaching 46.87% by mid-2024. Costs are largely driven by COGS, which accounted for ¥20.32 billion of the total expenses as of July 2024.
Hioki E.E. Corporation, a lesser-known yet promising entity within Japan's electronic sector, has recently announced a share repurchase program, planning to buy back up to 200,000 shares for ¥1 billion. This initiative underscores its commitment to shareholder returns and strategic capital management. Financially robust, Hioki boasts earnings that have outpaced the industry with a growth of 4% over the past year against an industry decline of 0.7%. Trading at 17.2% below its estimated fair value and with no debt concerns, Hioki presents as an undervalued opportunity with high-quality earnings and positive free cash flow dynamics.
- Click here and access our complete health analysis report to understand the dynamics of Hioki E.E.
Understand Hioki E.E's track record by examining our Past report.
U-NEXT HOLDINGSLtd (TSE:9418)
Simply Wall St Value Rating: ★★★★★★
Overview: U-NEXT HOLDINGS Ltd. operates in various sectors including energy, communications, commercial systems, content distribution, and store services, with a market capitalization of ¥264.55 billion.
Operations: The company operates in diverse sectors including energy, communications, commercial systems, content distribution, and store services. Its largest revenue generator is the Content Distribution Business at ¥106.19 billion, followed by Store Services Business at ¥68.35 billion.
U-NEXT HOLDINGS Ltd., a lesser-known Japanese entity, demonstrates robust financial health and growth potential. With earnings up by 52.2% last year, surpassing the telecom industry's 23.7%, the company is trading at a compelling 33% below its estimated fair value. Its debt has significantly decreased from 381% to 69% over five years, while maintaining a satisfactory net debt-to-equity ratio of 7.8%. Upcoming organizational restructuring plans further signal proactive management, aligning with its positive free cash flow status and well-covered interest payments by EBIT (59.2x).
U-NEXT HOLDINGSLtd (TSE:9418)
Simply Wall St Value Rating: ★★★★★★
Overview: U-NEXT HOLDINGS Ltd. operates in various sectors including energy, communications, commercial systems, content distribution, and store services, with a market capitalization of ¥264.55 billion.
Operations: The company operates in diverse sectors including energy, communications, commercial systems, content distribution, and store services. Its largest revenue generator is the Content Distribution Business at ¥106.19 billion, followed by Store Services Business at ¥68.35 billion.
U-NEXT HOLDINGS Ltd., a lesser-known Japanese entity, demonstrates robust financial health and growth potential. With earnings up by 52.2% last year, surpassing the telecom industry's 23.7%, the company is trading at a compelling 33% below its estimated fair value. Its debt has significantly decreased from 381% to 69% over five years, while maintaining a satisfactory net debt-to-equity ratio of 7.8%. Upcoming organizational restructuring plans further signal proactive management, aligning with its positive free cash flow status and well-covered interest payments by EBIT (59.2x).
Turning Ideas Into Actions
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Curious About Other Options?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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- Find companies with promising cash flow potential yet trading below their fair value.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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About TSE:2201
Morinaga&Co
Manufactures, purchases, and sells confectionaries, food stuffs, frozen desserts, and health products in Japan and internationally.
