NAC Co., Ltd. (9788) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Business Brain Showa-ota, Inc.

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NAC Co., Ltd.

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Microwave Chemical Co., Ltd.

VINX Corp.

Japan Best Rescue System Co., Ltd.

Why is NAC Co., Ltd. ?

Weak Long Term Fundamental Strength with a -2.93% CAGR growth in Net Sales over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of -2.93% over the last 5 years

Flat results in Mar 26

INTEREST(HY) At JPY 47 MM has Grown at 17.5%

With ROE of 5.30%, it has a very attractive valuation with a 1.03 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 -7.41%, its profits have fallen by -33.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.41% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to NAC Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is NAC Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

NAC Co., Ltd.

-7.41%

-0.59

12.91%

Japan Nikkei 225

59.79%

2.03

29.50%

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)

-9.58%

EBIT to Interest (avg)

47.31

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

1.97

Tax Ratio

33.11%

Dividend Payout Ratio

56.39%

Pledged Shares

Institutional Holding

ROCE (avg)

13.98%

ROE (avg)

8.25%

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

1.03

EV to EBIT

11.38

EV to EBITDA

6.25

EV to Capital Employed

1.03

EV to Sales

0.40

PEG Ratio

Dividend Yield

ROCE (Latest)

9.04%

ROE (Latest)

5.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

11What is working for the Company

ROCE(HY)

Highest at 7.17%

NET SALES(Q)

Highest at JPY 16,690 MM

PRE-TAX PROFIT(Q)

Highest at JPY 1,139 MM

NET PROFIT(Q)

Highest at JPY 849.59 MM

EPS(Q)

Highest at JPY 19.44

-6What is not working for the Company

INTEREST(HY)

At JPY 47 MM has Grown at 17.5%

Here's what is working for NAC Co., Ltd.

Pre-Tax Profit

At JPY 1,139 MM has Grown at 146%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 849.59 MM has Grown at 161.34%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 16,690 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 1,139 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 849.59 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 19.44

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Here's what is not working for NAC Co., Ltd.

Interest

At JPY 47 MM has Grown at 17.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)