Stock price and business performance are rising! / 3064:MonotaRO
The stock price had dropped to 2,243 yen in March 2020 due to the corona virus shock. But the highest price of 3,370 yen recorded in October 2018 was renewed on July 9 2020 with the highest price of 4,770 yen since listing.
MonotaRO couldn’t be better. This time I would like to introduce such a relationship with MonotaRO. It’s not something I can brag about. I would like to my failure story.
MonotaRO is a company mainly engaged order of factory and construction indirect materials in online site, “Grainger” (GWW) in US, is the parent company with a 49.9% stake. Corporate customers and individuals customers can use online site. I also use corporate and personal accounts. And I am a very satisfied this company as a user.
Various materials and parts are cheap. In addition, it can be said that MonotaRO has almost everything you want. It is useful because their items are delivered quickly.
In the field of factory material, It was said that MonotaRO is the company like Amazon. I think it makes sense.The point of view on business is wonderful. I think that MonotaRO’s business model will succeed now, but I couldn’t notice it before MonotaRO, so it’s a really brilliant idea. We can see the TV commercials of MorotaRO from a few years. They are already major company. It seems that the number of individual customers is increasing. Many of my acquaintances are also members and I am realized.
Recently, They split the stocks from 1 share to 2 shares on 2015/9 and 1 share to 2 shares on 2018/9.
My relationship with MonotaRO started by buying 100 shares for 2,400 yen on March 28 2020.
I have foresight. Now the stock price has almost doubled. As of August, it’s about 4,700 yen, so it’s +2,300 yen × 100 shares = a great plus.
Sorry, I sold all stocks after two weeks. I got about plus 6,000 yen…At that time, I thought that normal stock trading was day trades and swing trades. I thought that it was OK if I hold it for 2 weeks and get +6,000 yen. I have no foresight…
Sales and Business profit of MonotaRO have been growing steadily over the last two years. 2020 1Q is from 2020/January to March, and 2Q is from 2020/April to June. It is a period of corona virus shock, but it is a graph that does not feel that.
Over the past five years, the sales growth has been stable all the time. This is amazing. The year-to-year rate of sales has also got 20%, excluding 2019 4Q.
Now I would like to compare with MonotaRO’s competitors. The graph below shows the change in sales. After all, the sales of the famous companies ASKUL and MISUMI are great. However, the growth of MonotaRO is amazing. The momentum is different. (ASKUL only has June-May account period, and the other three companies have January-December accounts, so the total period is actually offset one month)
Next is the graph of business profit. Do you feel uncomfortable feeling? Didn’t you think so? Probably your impressions with graph below is different from the graph above. Please compare it again with the graph above…
That’s right. In the graph of sales, I thought that ASKUL was No1 and MonotaRO was No4 in the sales graph, but when I look at the graph of business profit below, MonotaRO is almost No2. Moreover, in 2020 2Q, MonotaRO is No1 by overtaking MISUMI!
Sales are fourth, but business profit is top class. I think the graph below is easy to understand. This graph shows the ratio of business profit on sales. The meaning of business profit is as follows in detail.
Business profit = Sales – Cost of sales – Selling general and administrative expenses
(Selling general and administrative expenses include office rent, utility costs, communication costs, and advertising costs.)
MonotaRO’s business profit is incredible. So even if the sales are low, the business profit is high. It means that the power to make a profit is strong. In other words, it’s efficient.
The next graph is ROE and ROA. The detailed explanation is below, but the point is how efficiently you are earning.
ROE: Return on equity / It shows how efficiently you earned net income by using the capital invested by shareholders. You can see the good return when you invest. The higher the higher the better.
ROA: Return on Assets / It shows how efficiently you earned net profit by using the assets that the company has. The higher the higher the better.
MonotaRO is by far the best. They efficiently use the capital invested by their shareholders to make a profit, and they use the company’s assets to make a good profit. ROE and ROA are interesting indicators.
Looking at it in this way, I want to invest again in MonotaRO, which uses the precious money I invested in to make profit efficiently. It’s a little hard to buy as the stock price rises too much.
I bought it at half the current price one year and five months ago, but I had sold it two weeks later. As of August 2020, the stock price has almost doubled…
The relationship MonotaRO and I is like I said good bye to my ex-girlfriend after 2 weeks from first date, after that she had grown up into a big actress. Unfortunately, I don’t have foresight?