Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Securities analyst covering electronics, precision equipment & robotics, engineering, construction, transport and other sectors for more than 25 years in Japan and 3 years in Korea. Permanent resident of Japan.

Senior Technology Analyst, Japanese Equities

MonotaRO (3064 JP): Buy into Current Weakness

MonotaRO (3064 JP): Pandemic-Driven Growth Surge Fading

🇯🇵 JAPAN • Results & Revisions ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​02/​​​​​​​​​​​​​​02 - Aisin, MonotaRO

Gravity Works As WeWork Doesn't; Now Plan B

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

MonotaRO continues to generate 20%+ sales growth and its operating and net margins should improve somewhat with the introduction of more efficient data-driven marketing and an end to losses overseas.But at 57x earnings, 36x EV/EBITDA and 5x sales projected for 2023, this is largely in the price and the shares have reached Overbought territory. As Campbell Gunn wrote in <a href="https://www.smartkarma.com/insights/japan-results-revisions-02-02-aisin-monotaro" target="_blank" data-smartkarma-citation="insights:47729" rel="noopener">🇯🇵 JAPAN • Results &amp; Revisions ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​02/​​​​​​​​​​​​​​02 - Aisin, MonotaRO</a> , While it may be too early to short MonotaRO shares, the case for the long 'side' is not compelling. MonotaRO plans to implement a 2-for-1 share split effective April 1, 2021.

MonotaRO continues to generate 20%+ sales growth and its operating and net margins should improve somewhat with the introduction of more efficient data-driven marketing and an end to losses overseas.But at 57x earnings, 36x EV/EBITDA and 5x sales projected for 2023, this is largely in the price and the shares have reached Overbought territory. As Campbell Gunn wrote in 🇯🇵 JAPAN • Results &amp; Revisions ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​02/​​​​​​​​​​​​​​02 - Aisin, MonotaRO , While it may be too early to short MonotaRO shares, the case for the long 'side' is not compelling. MonotaRO plans to implement a 2-for-1 share split effective April 1, 2021.

MonotaRO (3064 JP): Sell into Current Rally

MonotaRO Co Ltd

MonotaRO (3064 JP): Sell into Current Rally