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NAFCO Co., Ltd.

  • Market Cap: Small Cap
  • Industry: Furniture, Home Furnishing
  • ISIN: JP3651160008
  • TKS: 2790
JPY
2,120.00
13 (0.62%)

Sep 18

TKS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Handsman Co., Ltd.
Keiyo Co., Ltd.
Joyful Honda Co. Ltd.
DCM Holdings Co., Ltd.
Alleanza Holdings Co., Ltd.
Makiya Co., Ltd.
Kohnan Shoji Co., Ltd.
KOMERI CO., LTD.
NAFCO Co., Ltd.
Sekichu Co., Ltd.
Arclands Corp.

Why is NAFCO Co., Ltd. ?

1
Poor Management Efficiency with a low ROE of 3.88%
  • The company has been able to generate a Return on Equity (avg) of 3.88% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with a -36.04% CAGR growth in Operating Profits over the last 5 years
  • The company has been able to generate a Return on Equity (avg) of 3.88% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -5.59% and Operating profit at -36.04% over the last 5 years
4
The company has declared Negative results for the last 3 consecutive quarters
  • NET PROFIT(HY) At JPY 97.96 MM has Grown at -77.75%
  • RAW MATERIAL COST(Y) Grown by 13.19% (YoY)
  • CASH AND EQV(HY) Lowest at JPY 32,356 MM
5
Underperformed the market in the last 1 year
  • The stock has generated a return of 3.92% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 43.52%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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 Furniture, Home Furnishing)

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

Is NAFCO Co., Ltd. for you?

Low Risk, Low Return

Absolute
Risk Adjusted
Volatility
NAFCO Co., Ltd.
3.92%
-1.33
18.39%
Japan Nikkei 225
43.52%
1.48
29.43%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
-5.59%
EBIT Growth (5y)
-36.04%
EBIT to Interest (avg)
49.76
Debt to EBITDA (avg)
0.39
Net Debt to Equity (avg)
0.01
Sales to Capital Employed (avg)
1.04
Tax Ratio
68.36%
Dividend Payout Ratio
639.35%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.01%
ROE (avg)
3.88%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
58
Industry P/E
Price to Book Value
0.40
EV to EBIT
30.25
EV to EBITDA
7.68
EV to Capital Employed
0.40
EV to Sales
0.35
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
1.33%
ROE (Latest)
0.70%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

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

2What is working for the Company
NET SALES(Q)

Highest at JPY 47,451 MM

EPS(Q)

Highest at JPY 36.81

-21What is not working for the Company
NET PROFIT(HY)

At JPY 97.96 MM has Grown at -77.75%

RAW MATERIAL COST(Y)

Grown by 13.19% (YoY

CASH AND EQV(HY)

Lowest at JPY 32,356 MM

DEBT-EQUITY RATIO (HY)

Highest at 6.99 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.83 times

INTEREST(Q)

Highest at JPY 97 MM

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

Net Sales
Highest at JPY 47,451 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (JPY MM)

EPS
Highest at JPY 36.81
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 NAFCO Co., Ltd.

Net Profit
At JPY 97.96 MM has Grown at -77.75%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest
At JPY 97 MM has Grown at 31.08%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest
Highest at JPY 97 MM
in the last five periods and Increased by 31.08% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv
Lowest at JPY 32,356 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio
Highest at 6.99 %
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

Inventory Turnover Ratio
Lowest at 1.83 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost
Grown by 13.19% (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

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