ScoreWhy is Naito & Co., Ltd. ?
1
Poor Management Efficiency with a low ROE of 3.26%
- The company has been able to generate a Return on Equity (avg) of 3.26% signifying low profitability per unit of shareholders funds
2
Company has very low debt and has enough cash to service the debt requirements
3
Poor long term growth as Net Sales has grown by an annual rate of 1.61% and Operating profit at 20.27% over the last 5 years
4
With a growth in Net Profit of 74.07%, the company declared Very Positive results in May 26
- ROCE(HY) Highest at 3.6%
- DEBT-EQUITY RATIO (HY) Lowest at -1.23 %
- INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
5
With ROE of 2.52%, it has a very attractive valuation with a 0.59 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 0.73%, its profits have risen by 70.3% ; the PEG ratio of the company is 0.3
6
Underperformed the market in the last 1 year
- The stock has generated a return of 0.73% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 75.22%
Real-Time Research ReportHow 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.
0.73%
-0.46
17.37%
Japan Nikkei 225
75.22%
2.67
28.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.61%
EBIT Growth (5y)
20.27%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0.75
Net Debt to Equity (avg)
0.02
Sales to Capital Employed (avg)
3.26
Tax Ratio
36.44%
Dividend Payout Ratio
77.13%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.93%
ROE (avg)
3.26%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
0.59
EV to EBIT
15.97
EV to EBITDA
9.05
EV to Capital Employed
0.58
EV to Sales
0.17
PEG Ratio
0.33
Dividend Yield
NA
ROCE (Latest)
3.66%
ROE (Latest)
2.52%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend25What is working for the Company
ROCE(HY)
Highest at 3.6%
DEBT-EQUITY RATIO
(HY)
Lowest at -1.23 %
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by -3.93% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 8.03 times
NET SALES(Q)
Highest at JPY 13,110 MM
OPERATING PROFIT(Q)
Highest at JPY 418 MM
OPERATING PROFIT MARGIN(Q)
Highest at 3.19 %
PRE-TAX PROFIT(Q)
Highest at JPY 345 MM
NET PROFIT(Q)
Highest at JPY 235 MM
EPS(Q)
Highest at JPY 4.29
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Naito & Co., Ltd.
Pre-Tax Profit
At JPY 345 MM has Grown at 204.64%
over average net sales of the previous four periods of JPY 113.25 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 235 MM has Grown at 230.99%
over average net sales of the previous four periods of JPY 71 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Debt-Equity Ratio
Lowest at -1.23 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Sales
Highest at JPY 13,110 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Sales
At JPY 13,110 MM has Grown at 20.5%
over average net sales of the previous four periods of JPY 10,879.5 MMMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 418 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 3.19 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 345 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 235 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 4.29
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Inventory Turnover Ratio
Highest at 8.03 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -3.93% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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