Nadex Co., Ltd. (7435) 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

Eiwa Corp.

SEMITEC Corp.

Nihon Denkei Co., Ltd.

Shizuki Electric Co., Inc.

Kyoritsu Electric Corp.

Nadex Co., Ltd.

Chino Corp.

Sansha Electric Manufacturing Co., Ltd.

Adtec Plasma Technology Co., Ltd.

DKK-TOA Corp.

Shikino High-Tech Co., Ltd.

Why is Nadex Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 93.93

Poor long term growth as Net Sales has grown by an annual rate of 2.97% and Operating profit at -6.73% over the last 5 years

Flat results in Apr 25

DIVIDEND PAYOUT RATIO(Y) Lowest at 35.48%
RAW MATERIAL COST(Y) Grown by 12.86% (YoY)
CASH AND EQV(HY) Lowest at JPY 7,758.78 MM

With ROE of 2.53%, it has a very attractive valuation with a 0.46 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 8.44%, its profits have fallen by -39.9%

Underperformed the market in the last 1 year

The stock has generated a return of 8.44% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nadex Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Nadex Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nadex Co., Ltd.

7.08%

-0.20

21.23%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.97%

EBIT Growth (5y)

-6.73%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

1.80

Tax Ratio

62.13%

Dividend Payout Ratio

110.55%

Pledged Shares

Institutional Holding

ROCE (avg)

7.72%

ROE (avg)

4.45%

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

0.46

EV to EBIT

6.57

EV to EBITDA

3.57

EV to Capital Employed

0.35

EV to Sales

0.15

PEG Ratio

Dividend Yield

ROCE (Latest)

5.36%

ROE (Latest)

2.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

PRE-TAX PROFIT(Q)

Highest at JPY 713.32 MM

NET PROFIT(Q)

Highest at JPY 505.69 MM

EPS(Q)

Highest at JPY 62.01

-15What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 35.48%

RAW MATERIAL COST(Y)

Grown by 12.86% (YoY

CASH AND EQV(HY)

Lowest at JPY 7,758.78 MM

INTEREST(Q)

Highest at JPY 3.28 MM

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

Pre-Tax Profit

Highest at JPY 713.32 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 505.69 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 62.01

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 Nadex Co., Ltd.

Interest

At JPY 3.28 MM has Grown at 37.19%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Dividend Payout Ratio

Lowest at 35.48% and Fallen

In each year in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Interest

Highest at JPY 3.28 MM

in the last five periods and Increased by 37.19% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 7,758.78 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 12.86% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at JPY 0.18 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income