Nagoya Railroad Co., Ltd. (9048) 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

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Nagoya Railroad Co., Ltd.

Sotetsu Holdings, Inc.

Why is Nagoya Railroad Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.29%

The company has been able to generate a Return on Capital Employed (avg) of 2.29% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 2.09% and Operating profit at -2.34% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 2.29% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 2.09% and Operating profit at -2.34% over the last 5 years

Negative results in Dec 25

NET PROFIT(HY) At JPY 15,775.2 MM has Grown at -31.11%
ROCE(HY) Lowest at 5.71%
RAW MATERIAL COST(Y) Grown by 6.36% (YoY)

With ROCE of 4.30%, it has a very attractive valuation with a 0.85 Enterprise value to Capital Employed

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 -2.33%, its profits have risen by 33.8% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How 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 Transport Services)

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

Is Nagoya Railroad Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nagoya Railroad Co., Ltd.

-2.33%

-0.12

16.10%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.09%

EBIT Growth (5y)

-2.34%

EBIT to Interest (avg)

5.46

Debt to EBITDA (avg)

9.12

Net Debt to Equity (avg)

1.12

Sales to Capital Employed (avg)

0.65

Tax Ratio

26.77%

Dividend Payout Ratio

20.04%

Pledged Shares

Institutional Holding

ROCE (avg)

2.29%

ROE (avg)

4.41%

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

0.69

EV to EBIT

19.87

EV to EBITDA

9.92

EV to Capital Employed

0.85

EV to Sales

1.21

PEG Ratio

0.24

Dividend Yield

0.03%

ROCE (Latest)

4.30%

ROE (Latest)

8.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

3What is working for the Company

OPERATING PROFIT(Q)

Highest at JPY 26,050 MM

PRE-TAX PROFIT(Q)

Highest at JPY 16,156 MM

EPS(Q)

Highest at JPY 49.99

-16What is not working for the Company

NET PROFIT(HY)

At JPY 15,775.2 MM has Grown at -31.11%

ROCE(HY)

Lowest at 5.71%

RAW MATERIAL COST(Y)

Grown by 6.36% (YoY

INTEREST(Q)

Highest at JPY 1,293 MM

Here's what is working for Nagoya Railroad Co., Ltd.

Operating Profit

Highest at JPY 26,050 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 16,156 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

EPS

Highest at JPY 49.99

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Depreciation

Highest at JPY 11,643 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

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

Net Profit

At JPY 15,775.2 MM has Grown at -31.11%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Interest

Highest at JPY 1,293 MM

in the last five periods and Increased by 5.81% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 6.36% (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