OTCPK:MONO.Y

Stock Analysis Report

Executive Summary

MonotaRO Co., Ltd., together with its subsidiaries, operates an online MRO products store in Japan, Korea, China, Indonesia, and internationally.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.

Share Price & News

How has MonotaRO's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MONO.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.5%

MONO.Y

-0.9%

US Trade Distributors

0.7%

US Market


1 Year Return

14.5%

MONO.Y

14.6%

US Trade Distributors

12.9%

US Market

Return vs Industry: MONO.Y matched the US Trade Distributors industry which returned 14.6% over the past year.

Return vs Market: MONO.Y exceeded the US Market which returned 12.9% over the past year.


Shareholder returns

MONO.YIndustryMarket
7 Day-3.5%-0.9%0.7%
30 Day3.7%7.3%4.4%
90 Day19.0%18.9%7.0%
1 Year14.5%14.5%16.7%14.6%15.4%12.9%
3 Year157.1%157.1%39.2%33.2%49.1%39.5%
5 Year332.8%332.8%33.9%24.6%62.7%44.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is MonotaRO undervalued compared to its fair value and its price relative to the market?

71.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MONO.Y ($27.46) is trading above our estimate of fair value ($16.43)

Significantly Below Fair Value: MONO.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MONO.Y is poor value based on its PE Ratio (71.8x) compared to the Trade Distributors industry average (17.9x).

PE vs Market: MONO.Y is poor value based on its PE Ratio (71.8x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: MONO.Y is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: MONO.Y is overvalued based on its PB Ratio (21.8x) compared to the US Trade Distributors industry average (1.9x).


Next Steps

Future Growth

How is MonotaRO forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

19.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MONO.Y's forecast earnings growth (19.4% per year) is above the savings rate (2.7%).

Earnings vs Market: MONO.Y's earnings (19.4% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: MONO.Y's earnings are forecast to grow, but not significantly.

Revenue vs Market: MONO.Y's revenue (16.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: MONO.Y's revenue (16.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MONO.Y's Return on Equity is forecast to be high in 3 years time (31.2%)


Next Steps

Past Performance

How has MonotaRO performed over the past 5 years?

26.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MONO.Y has high quality earnings.

Growing Profit Margin: MONO.Y's current net profit margins (8.1%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: MONO.Y's earnings have grown significantly by 26.2% per year over the past 5 years.

Accelerating Growth: MONO.Y's earnings growth over the past year (9.4%) is below its 5-year average (26.2% per year).

Earnings vs Industry: MONO.Y earnings growth over the past year (9.4%) exceeded the Trade Distributors industry -6.1%.


Return on Equity

High ROE: MONO.Y's Return on Equity (29.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MonotaRO's financial position?


Financial Position Analysis

Short Term Liabilities: MONO.Y's short term assets (¥36.2B) exceeds its short term liabilities (¥17.7B)

Long Term Liabilities: MONO.Y's short term assets (36.2B) exceeds its long term liabilities (2.0B)


Debt to Equity History and Analysis

Debt Level: MONO.Y's debt to equity ratio (7.3%) is considered satisfactory

Reducing Debt: MONO.Y's debt to equity ratio has reduced from 17.4% to 7.3% over the past 5 years.

Debt Coverage: MONO.Y's debt is well covered by operating cash flow (398.6%).

Interest Coverage: MONO.Y's interest payments on its debt are well covered by EBIT (597.5x coverage).


Balance Sheet

Inventory Level: MONO.Y has a high level of physical assets or inventory.

Debt Coverage by Assets: MONO.Y's debt is covered by short term assets (assets are 14.5x debt).


Next Steps

Dividend

What is MonotaRO's current dividend yield, its reliability and sustainability?

0.50%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%1.4%markettop25%3.6%industryaverage2.6%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: MONO.Y's dividend (0.5%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: MONO.Y's dividend (0.5%) is low compared to the top 25% of dividend payers in the US market (3.65%).


Stability and Growth of Payments

Stable Dividend: MONO.Y is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: MONO.Y is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: MONO.Y is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MONO.Y's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

7.7yrs

Average board tenure


CEO

Masaya Suzuki (44yo)

0yrs

Tenure

0

Mr. Masaya Suzuki has been the Representative Executive Officer and President of MonotaRO Co., Ltd. since March 2012 and serves as its Chief Executive Officer and Chief Operating Officer. Mr. Suzuki served ...


Board Age and Tenure

7.7yrs

Average Tenure

58yo

Average Age

Experienced Board: MONO.Y's board of directors are considered experienced (7.7 years average tenure).


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

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Masaya Suzuki (44yo)

    Chief Executive Officer

    • Tenure: 0yrs
  • Kohei Shibagaki (54yo)

    Executive Officer and General Manager of Customer Support

    • Tenure: 0yrs
  • Hiroki Yoshino (46yo)

    Executive Officer and General Manager of Logistics

    • Tenure: 0yrs
  • Tetsuya Koda (45yo)

    Executive Officer and General Manager of Administration

    • Tenure: 0yrs
  • Masaaki Hashihara (38yo)

    Executive Officer and General Manager of Marketing

    • Tenure: 0yrs

Board Members

  • Haruo Kitamura (61yo)

    External Director

    • Tenure: 13.4yrs
  • Kinya Seto (59yo)

    Chairman of the Board of Directors

    • Tenure: 7.7yrs
  • Masanori Miyajima (66yo)

    External Director

    • Tenure: 19yrs
  • Yasuo Yamagata (48yo)

    External Director

    • Tenure: 14.2yrs
  • Masaya Suzuki (44yo)

    Chief Executive Officer

    • Tenure: 0yrs
  • Masahiro Kishida (58yo)

    External Director

    • Tenure: 7.7yrs
  • David Rawlinson (43yo)

    Director

    • Tenure: 5.7yrs

Company Information

MonotaRO Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MonotaRO Co., Ltd.
  • Ticker: MONO.Y
  • Exchange: OTCPK
  • Founded: 2000
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: JP¥737.826b
  • Listing Market Cap: JP¥6.779b
  • Shares outstanding: 248.34m
  • Website: https://www.monotaro.com

Number of Employees


Location

  • MonotaRO Co., Ltd.
  • Liber Building
  • 3rd Floor
  • Amagasaki
  • Hyogo
  • 660-0876
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3064TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYDec 2006
MONO.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDAug 2013

Biography

MonotaRO Co., Ltd., together with its subsidiaries, operates an online MRO products store in Japan, Korea, China, Indonesia, and internationally. It offers products for manufacturing, construction, and aut ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 00:16
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.