M&a Capital Partners Co (TYO:6080) cover image
103 Reads (3 mins read)

Why M&a Capital Partners Co (TYO:6080) will appeal to moat investors

22nd May by Ben Hobson

There's an exclusive group of companies in the stock market that stand out because they've got what billionaire investor Warren Buffett calls economic moats. Like medieval castles, their profits are fortified by impregnable business models... and there are signs that M&a Capital Partners Co (TYO:6080) might be one of them.

Given the present disruption and volatility in the stock market, it is more important than ever to identify high-quality stocks for your portfolio - and finding companies with moats is one way to do it. 

Moats come in different forms, but they mostly consist of:

  • Intangible Assets - Such as brands that customers love, valuable patents or regulatory approvals
  • High switching Costs - It might be too costly, complicated or unnecessary for customers to look elsewhere
  • Network Effects - When customers become part of a product it creates tremendously powerful businesses
  • Cost Advantages - Superior processes and unique locations and assets make it hard for others to compete
  • Great Scale - Large infrastructure and distribution networks are powerful barriers to entry in many industries

Here's a quick guide to finding the clues to economic moats - using {{links.nameAndTicker}}, which is active in the Investment Banking & Investment Services industry, as an example...

GET MORE DATA-DRIVEN INSIGHTS INTO TYO:6080 »

M&a Capital Partners Co (TYO:6080)'s impressive metrics

Some of the biggest indicators of a moat involve persistent strong margins and high levels of cash generation – cash being especially important given the recent shocks to the worldwide economy. Here are a few ways of gauging these characteristics - and how M&a Capital Partners Co compares:

  1. High rates of Free Cash Flow - the measure of a thriving company.
    - A high ratio of free cash flow to sales can be a very positive sign. For M&a Capital Partners Co, the figure is an impressive 26.4%. 
  2. High Return on Capital Employed - the measure of a company growing efficiently and profitably.
    - A 5-year average ROCE of more than 12 percent is a pointer to strong efficiency. For M&a Capital Partners Co, the figure is an eye-catching 36.0%.
  3. High Return on Equity (compared to peers) - the measure of a company making good profits from its assets.
    - M&a Capital Partners Co has a 5-year average ROE of 27.9%.
  4. High Operating Margins (compared to peers) - the measure of a company with pricing power
    - M&a Capital Partners Co has a 5-year average operating margin of 46.8%.

Next steps

Some of the best quality stocks in the market have defensible models that can deliver high levels of shareholder returns over the long term. By analysing some key medium-term profitability and efficiency metrics, it's possible to start tracking them down. On this basis, it certainly appears that M&a Capital Partners Co has some of the financial traits of an economic moat.

To find out more you might want to take a look at the TYO:6080 StockReport from the award-winning research platform, Stockopedia. StockReports contain a goldmine of information in a single page and can help to inform your investment decisions.

To find more stocks like M&a Capital Partners Co, you'll need to equip yourself with professional-grade data and screening tools. This kind of information has traditionally been closely guarded by professional fund managers. But our team of financial analysts have carefully constructed this screen - Stockopedia’s Moats of the FTSE 350 - which gives you everything you need. So why not come and take a look?

Share this article
As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.
Share Price
¥4090
Change Today
-0.97%
M&a Capital Partners Co ( )

Stockopedia is here to help individual investors beat the markets by being the very best in stock analysis, research & community. Take a 30 day free trial of our extensive multi-award winning service and find out why more than ten thousand global investors can't live without it.

© Stockopedia 2020, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.