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
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
3
The company has declared negative results for the last 2 consecutive quarters
- INTEREST COVERAGE RATIO(Q) Lowest at 222.97
- RAW MATERIAL COST(Y) Grown by 8.77% (YoY)
- CASH AND EQV(HY) Lowest at JPY 30,678 MM
4
Underperformed the market in the last 1 year
- The stock has generated a return of 21.25% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 75.22%
Real-Time Research ReportHow much should you sell?
- 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.
21.25%
-1.50
16.80%
Japan Nikkei 225
75.22%
2.67
28.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-5.59%
EBIT Growth (5y)
-36.04%
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)
1.05
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
61
Industry P/E
Price to Book Value
0.43
EV to EBIT
32.11
EV to EBITDA
8.15
EV to Capital Employed
0.43
EV to Sales
0.37
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
1.33%
ROE (Latest)
0.70%
TechnicalsTechnical 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
Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-33What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 222.97
RAW MATERIAL COST(Y)
Grown by 8.77% (YoY
CASH AND EQV(HY)
Lowest at JPY 30,678 MM
DEBT-EQUITY RATIO
(HY)
Highest at 11.33 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.83 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 37.28 times
INTEREST(Q)
Highest at JPY 74 MM
OPERATING PROFIT(Q)
Lowest at JPY 165 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 0.43 %
PRE-TAX PROFIT(Q)
Lowest at JPY -1,481 MM
NET PROFIT(Q)
Lowest at JPY -830 MM
EPS(Q)
Lowest at JPY -52.11
Here's what is not working for NAFCO Co., Ltd.
Interest
At JPY 74 MM has Grown at 17.46%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 222.97
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Pre-Tax Profit
At JPY -1,481 MM has Fallen at -48.84%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Interest
Highest at JPY 74 MM
in the last five periods and Increased by 17.46% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit
Lowest at JPY 165 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 0.43 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY -1,481 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY -830 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Net Profit
Fallen at -41.16%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY -52.11
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Cash and Eqv
Lowest at JPY 30,678 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 11.33 %
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 1.83 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 37.28 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 8.77% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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