OTCPK:MKML.F

Stock Analysis Report

Executive Summary

Makino Milling Machine Co., Ltd. manufactures and sells machine tools in Japan, the United States, the rest of Americas, China, rest of Asia, Europe, and internationally.

Snowflake

Fundamentals

Flawless balance sheet and good value.

Share Price & News

How has Makino Milling Machine's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

MKML.F

3.2%

US Machinery

1.3%

US Market


1 Year Return

n/a

MKML.F

1.6%

US Machinery

5.9%

US Market

Return vs Industry: Insufficient data to determine how MKML.F performed against the US Machinery industry.

Return vs Market: Insufficient data to determine how MKML.F performed against the US Market.


Shareholder returns

MKML.FIndustryMarket
7 Day0%3.2%1.3%
30 Day0%-3.8%-1.9%
90 Dayn/a-4.6%-1.8%
1 Yearn/a3.8%1.6%8.3%5.9%
3 Yearn/a45.8%36.4%45.6%36.2%
5 Year449.2%449.2%59.9%40.7%66.1%47.9%

Price Volatility Vs. Market

How volatile is Makino Milling Machine's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Makino Milling Machine undervalued compared to its fair value and its price relative to the market?

4.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MKML.F ($42.34) is trading below our estimate of fair value ($44.25)

Significantly Undervalued: MKML.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MKML.F is good value based on its PE Ratio (7.9x) compared to the Machinery industry average (19.6x).

PE vs Market: MKML.F is good value based on its PE Ratio (7.9x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: MKML.F's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MKML.F is good value based on its PB Ratio (0.7x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

How is Makino Milling Machine forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MKML.F's earnings are forecast to decline over the next 3 years (-0.2% per year).

Earnings vs Market: MKML.F's earnings are forecast to decline over the next 3 years (-0.2% per year).

High Growth Earnings: MKML.F's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MKML.F's revenue (0.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MKML.F's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MKML.F's Return on Equity is forecast to be low in 3 years time (4.4%).


Next Steps

Past Performance

How has Makino Milling Machine performed over the past 5 years?

10.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MKML.F's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: MKML.F's earnings growth over the past year (2.8%) is below its 5-year average (10.3% per year).

Earnings vs Industry: MKML.F earnings growth over the past year (2.8%) underperformed the Machinery industry 18.7%.


Return on Equity

High ROE: MKML.F's Return on Equity (9.3%) is considered low.


Return on Assets

ROA vs Industry: MKML.F's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: MKML.F has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Makino Milling Machine's financial position?


Financial Position Analysis

Short Term Liabilities: MKML.F's short term assets (¥157.6B) exceeds its short term liabilities (¥63.3B)

Long Term Liabilities: MKML.F's short term assets (157.6B) exceeds its long term liabilities (36.3B)


Debt to Equity History and Analysis

Debt Level: MKML.F's debt to equity ratio (22%) is considered satisfactory

Reducing Debt: MKML.F's debt to equity ratio has reduced from 67% to 22% over the past 5 years.

Debt Coverage: MKML.F's debt is well covered by operating cash flow (44.1%).

Interest Coverage: MKML.F earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: MKML.F has a high level of physical assets or inventory.

Debt Coverage by Assets: MKML.F's debt is covered by short term assets (assets are 4.534820x debt).


Next Steps

Dividend

What is Makino Milling Machine's current dividend yield, its reliability and sustainability?

2.55%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Years2.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MKML.F's dividend (2.55%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: MKML.F's dividend (2.55%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: MKML.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: MKML.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.7%), MKML.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Makino Milling Machine's salary, the management and board of directors tenure and is there insider trading?


CEO

Shinichi Inoue 0

0yrs

Tenure

0

Shinichi Inoue serves as President and Director at Makino Milling Machine Co. Ltd. 


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Tatsuaki Aiba

    VP & Director

    • Tenure: 0yrs
  • Toshiyuki Nagano

    Executive VP & Director

    • Tenure: 0yrs
  • Shinichi Inoue

    President & Director

    • Tenure: 0yrs

Board Members

  • Shun Makino

    Chairman of the Board

    • Tenure: 0yrs
  • Tatsuaki Aiba

    VP & Director

    • Tenure: 0yrs
  • Eiji Fukui

    Outside Corporate Auditor

    • Tenure: 0yrs
  • Shin Yoshidome (68yo)

    Director

    • Tenure: 0yrs
  • Toshiyuki Nagano

    Executive VP & Director

    • Tenure: 0yrs
  • Kazuo Hiruta

    Corporate Auditor

    • Tenure: 0yrs
  • Jiro Nakashima

    Outside Corporate Auditor

    • Tenure: 0yrs
  • Shinichi Inoue

    President & Director

    • Tenure: 0yrs
  • Yoshiki Ueda (66yo)

    Vice Chairman

    • Tenure: 0yrs
  • Hiroshi Suzuki

    Director

    • Tenure: 0yrs

Company Information

Makino Milling Machine Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Makino Milling Machine Co., Ltd.
  • Ticker: MKML.F
  • Exchange: OTCPK
  • Founded: 1937
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥114.886b
  • Listing Market Cap: JP¥1.063b
  • Shares outstanding: 24.44m
  • Website: https://www.makino.co.jp

Number of Employees


Location

  • Makino Milling Machine Co., Ltd.
  • 3-19 Nakane 2-chome
  • Meguro-ku
  • Tokyo
  • 152-8578
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MKML.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
6135TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992

Biography

Makino Milling Machine Co., Ltd. manufactures and sells machine tools in Japan, the United States, the rest of Americas, China, rest of Asia, Europe, and internationally. It offers vertical, horizontal, 5- ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/30 23:56
End of Day Share Price2019/07/03 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.