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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Nankai Electric Railway Co., Ltd.

Nagoya Railroad Co., Ltd.

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

With a fall in PBT of -24.11%, the company declared Very Negative results in Jun 25

RAW MATERIAL COST(Y) Grown by 9.72% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 128.12 %
INTEREST(Q) Highest at JPY 1,057 MM

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 -6.91%, 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.

-6.91%

-0.58

15.80%

Japan Nikkei 225

28.54%

1.11

25.75%

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

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

No Trend

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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 6%

DEBTORS TURNOVER RATIO(HY)

Highest at 11.34%

-13What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 9.72% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 128.12 %

INTEREST(Q)

Highest at JPY 1,057 MM

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

Inventory Turnover Ratio

Highest at 6%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 11.34%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 11,245 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.

Interest

At JPY 1,057 MM has Grown at 11.03%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 1,057 MM

in the last five periods and Increased by 11.03% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 128.12 %

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

Raw Material Cost

Grown by 9.72% (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