ScoreWhy 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
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 78.53
3
Poor long term growth as Net Sales has grown by an annual rate of -3.54% and Operating profit at -31.37% over the last 5 years
4
The company has declared Negative results for the last 10 consecutive quarters
- INTEREST(HY) At JPY 125 MM has Grown at 66.67%
- NET PROFIT(HY) At JPY 440.37 MM has Grown at -46.41%
- ROCE(HY) Lowest at -0.01%
5
With ROE of 0.57%, it has a very attractive valuation with a 0.34 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 -0.20%, its profits have fallen by -75.2%
6
Below par performance in long term as well as near term
- Along with generating -0.20% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to NAFCO Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is NAFCO Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
NAFCO Co., Ltd.
-0.05%
-1.19
23.50%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-3.54%
EBIT Growth (5y)
-31.37%
EBIT to Interest (avg)
78.53
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
0.01
Sales to Capital Employed (avg)
1.07
Tax Ratio
65.15%
Dividend Payout Ratio
837.93%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.49%
ROE (avg)
3.88%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
59
Industry P/E
Price to Book Value
0.34
EV to EBIT
42.22
EV to EBITDA
7.03
EV to Capital Employed
0.34
EV to Sales
0.29
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
0.81%
ROE (Latest)
0.57%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -2.97% (YoY
OPERATING PROFIT(Q)
Highest at JPY 3,359 MM
OPERATING PROFIT MARGIN(Q)
Highest at 7.14 %
PRE-TAX PROFIT(Q)
Highest at JPY 1,803 MM
NET PROFIT(Q)
Highest at JPY 1,028.37 MM
-18What is not working for the Company
INTEREST(HY)
At JPY 125 MM has Grown at 66.67%
NET PROFIT(HY)
At JPY 440.37 MM has Grown at -46.41%
ROCE(HY)
Lowest at -0.01%
CASH AND EQV(HY)
Lowest at JPY 37,378 MM
DEBT-EQUITY RATIO
(HY)
Highest at 2.79 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.91%
Here's what is working for NAFCO Co., Ltd.
Operating Profit
Highest at JPY 3,359 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 7.14 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 1,803 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 1,028.37 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Raw Material Cost
Fallen by -2.97% (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
Here's what is not working for NAFCO Co., Ltd.
Interest
At JPY 125 MM has Grown at 66.67%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Cash and Eqv
Lowest at JPY 37,378 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 2.79 %
in the last five Semi-Annual periodsMOJO 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 1.91%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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