Nabtesco Corp. (6268) 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

Miura Co., Ltd.

Horiba Ltd.

SCREEN Holdings Co. Ltd.

Ebara Corp.

AMADA Co., Ltd.

MISUMI Group, Inc.

Nabtesco Corp.

THK CO., LTD.

NOK Corp.

Sumitomo Heavy Industries, Ltd.

IHI Corp.

Why is Nabtesco Corp. ?

High Management Efficiency with a high ROE of 8.94%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Operating profit has grown by an annual rate -7.75% of over the last 5 years

Flat results in Jun 25

INTEREST(HY) At JPY 757 MM has Grown at 109.12%
DEBT-EQUITY RATIO (HY) Highest at -10.59 %

With ROE of 4.73%, it has a very attractive valuation with a 1.07 Price to Book Value

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 55.25%, its profits have fallen by -12.5%

Market Beating Performance

The stock has generated a return of 55.25% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nabtesco Corp. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Nabtesco Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Nabtesco Corp.

55.25%

348.95

36.93%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.93%

EBIT Growth (5y)

-7.75%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

1.11

Tax Ratio

22.78%

Dividend Payout Ratio

94.95%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

11.08%

ROE (avg)

8.94%

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

1.07

EV to EBIT

14.51

EV to EBITDA

7.35

EV to Capital Employed

1.08

EV to Sales

0.76

PEG Ratio

Dividend Yield

ROCE (Latest)

7.46%

ROE (Latest)

4.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 33,922 MM

RAW MATERIAL COST(Y)

Fallen by -7.35% (YoY

PRE-TAX PROFIT(Q)

At JPY 5,169 MM has Grown at 66.85%

NET PROFIT(Q)

At JPY 3,231 MM has Grown at 87.43%

-10What is not working for the Company

INTEREST(HY)

At JPY 757 MM has Grown at 109.12%

DEBT-EQUITY RATIO (HY)

Highest at -10.59 %

Here's what is working for Nabtesco Corp.

Operating Cash Flow

Highest at JPY 33,922 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Pre-Tax Profit

At JPY 5,169 MM has Grown at 66.85%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 3,231 MM has Grown at 87.43%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -7.35% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 4,452 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Nabtesco Corp.

Interest

At JPY 757 MM has Grown at 109.12%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -10.59 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio