Di-Nikko Engineering Co., Ltd. (6635) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

EARTH INFINITY CO. LTD.

Kikusui Holdings Corp.

WILLTEC Co., Ltd.

Hokuriku Electric Industry Co., Ltd.

ASTI CORP.

Di-Nikko Engineering Co., Ltd.

RIVER ELETEC CORP.

Okaya Electric Industries Co., Ltd.

nms Holdings Corp.

Ohizumi MFG Co., Ltd.

Tamagawa Holdings Co., Ltd.

Why is Di-Nikko Engineering Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.24%

The company has been able to generate a Return on Capital Employed (avg) of 3.24% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 3.24% signifying low profitability per unit of total capital (equity and debt)

With ROCE of 4.21%, it has a very attractive valuation with a 0.77 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 9.45%, its profits have fallen by -0.8%

Underperformed the market in the last 1 year

The stock has generated a return of 9.45% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.88%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Di-Nikko Engineering Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Di-Nikko Engineering Co., Ltd.

9.45%

-0.76

22.95%

Japan Nikkei 225

38.88%

1.46

26.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.62%

EBIT Growth (5y)

19.59%

EBIT to Interest (avg)

3.00

Debt to EBITDA (avg)

9.77

Net Debt to Equity (avg)

1.24

Sales to Capital Employed (avg)

1.97

Tax Ratio

12.83%

Dividend Payout Ratio

29.24%

Pledged Shares

Institutional Holding

ROCE (avg)

3.24%

ROE (avg)

9.55%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.49

EV to EBIT

18.40

EV to EBITDA

8.56

EV to Capital Employed

0.77

EV to Sales

0.30

PEG Ratio

Dividend Yield

ROCE (Latest)

4.21%

ROE (Latest)

8.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Bullish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 4.23%

CASH AND EQV(HY)

Highest at JPY 8,531.6 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 3.7

-14What is not working for the Company

NET PROFIT(Q)

At JPY 55.03 MM has Fallen at -56.89%

ROCE(HY)

Lowest at 3.98%

INTEREST COVERAGE RATIO(Q)

Lowest at 620.74

NET SALES(Q)

Lowest at JPY 8,810.9 MM

INTEREST(Q)

Highest at JPY 52.01 MM

Here's what is working for Di-Nikko Engineering Co., Ltd.

Inventory Turnover Ratio

Highest at 4.23% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at JPY 8,531.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 3.7

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Here's what is not working for Di-Nikko Engineering Co., Ltd.

Net Profit

At JPY 55.03 MM has Fallen at -56.89%

over average net sales of the previous four periods of JPY 127.65 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 52.01 MM has Grown at 36.31%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 620.74

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 8,810.9 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Sales

At JPY 8,810.9 MM has Fallen at -7.83%

over average net sales of the previous four periods of JPY 9,559.48 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 52.01 MM

in the last five periods and Increased by 36.31% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Non Operating Income

Highest at JPY 0.38 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income