Naito & Co., Ltd. (7624) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Denkyo Group Holdings Co. Ltd.

Naito & Co., Ltd.

KITAKEI CO., LTD.

Kimura Co., Ltd.

TORQ, Inc.

A&A Material Corp.

Harima-Kyowa Co., Ltd.

KUWAZAWA Holdings Corp.

Daimaru Enawin Co., Ltd.

Green Cross Co., Ltd.

Sanrin Co., Ltd.

Why is Naito & Co., Ltd. ?

Poor Management Efficiency with a low ROE of 3.24%

The company has been able to generate a Return on Equity (avg) of 3.24% signifying low profitability per unit of shareholders funds

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of -1.29% and Operating profit at -11.13% over the last 5 years

The company has declared positive results in Feb'2025 after 5 consecutive negative quarters

NET PROFIT(HY) Higher at JPY 227.65 MM
RAW MATERIAL COST(Y) Fallen by 0.18% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at 2.08 %

With ROE of 2.44%, it has a very attractive valuation with a 0.55 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 6.92%, its profits have fallen by -8.8%

Underperformed the market in the last 1 year

The stock has generated a return of 6.92% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Naito & Co., Ltd. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Naito & Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Naito & Co., Ltd.

6.98%

-0.34

21.72%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.29%

EBIT Growth (5y)

-11.13%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.75

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

3.27

Tax Ratio

36.44%

Dividend Payout Ratio

69.76%

Pledged Shares

Institutional Holding

ROCE (avg)

3.93%

ROE (avg)

3.24%

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

0.55

EV to EBIT

15.15

EV to EBITDA

8.63

EV to Capital Employed

0.55

EV to Sales

0.16

PEG Ratio

Dividend Yield

ROCE (Latest)

3.60%

ROE (Latest)

2.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

13What is working for the Company

NET PROFIT(HY)

Higher at JPY 227.65 MM

RAW MATERIAL COST(Y)

Fallen by 0.18% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 2.08 %

DEBTORS TURNOVER RATIO(HY)

Highest at 5.01%

-7What is not working for the Company

INTEREST(9M)

At JPY 5 MM has Grown at 25%

CASH AND EQV(HY)

Lowest at JPY 202 MM

PRE-TAX PROFIT(Q)

At JPY 78 MM has Fallen at -37.97%

NET PROFIT(Q)

At JPY 53 MM has Fallen at -32.62%

Here's what is working for Naito & Co., Ltd.

Debt-Equity Ratio

Lowest at 2.08 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 5.01%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 0.18% (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 Naito & Co., Ltd.

Interest

At JPY 5 MM has Grown at 25%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 78 MM has Fallen at -37.97%

over average net sales of the previous four periods of JPY 125.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 53 MM has Fallen at -32.62%

over average net sales of the previous four periods of JPY 78.66 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Cash and Eqv

Lowest at JPY 202 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents