Nakabayashi Co., Ltd. (7987) 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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Why is Nakabayashi Co., Ltd. ?

Weak Long Term Fundamental Strength with a 0.82% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 4.79% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -0.61% and Operating profit at 0.82% over the last 5 years

With a growth in Operating Profit of 16.69%, the company declared Very Positive results in Mar 26

DEBT-EQUITY RATIO (HY) Lowest at 14.05 %
INTEREST COVERAGE RATIO(Q) Highest at 6,126.92
RAW MATERIAL COST(Y) Fallen by -5.37% (YoY)

With ROCE of 7.29%, it has a very attractive valuation with a 0.62 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 9.07%, its profits have risen by 58.9% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 9.07% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nakabayashi Co., Ltd. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

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

Is Nakabayashi Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nakabayashi Co., Ltd.

-100.0%

0.33

21.03%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.61%

EBIT Growth (5y)

0.82%

EBIT to Interest (avg)

17.41

Debt to EBITDA (avg)

2.19

Net Debt to Equity (avg)

0.20

Sales to Capital Employed (avg)

1.49

Tax Ratio

34.32%

Dividend Payout Ratio

31.10%

Pledged Shares

Institutional Holding

ROCE (avg)

4.35%

ROE (avg)

4.79%

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

8.46

EV to EBITDA

5.24

EV to Capital Employed

0.62

EV to Sales

0.35

PEG Ratio

0.10

Dividend Yield

ROCE (Latest)

7.29%

ROE (Latest)

8.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

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

DEBT-EQUITY RATIO (HY)

Lowest at 14.05 %

INTEREST COVERAGE RATIO(Q)

Highest at 6,126.92

RAW MATERIAL COST(Y)

Fallen by -5.37% (YoY

NET SALES(Q)

Highest at JPY 17,201 MM

OPERATING PROFIT(Q)

Highest at JPY 1,593 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.26 %

PRE-TAX PROFIT(Q)

Highest at JPY 1,277 MM

NET PROFIT(Q)

Highest at JPY 1,258.04 MM

-1What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 13,041 MM

Here's what is working for Nakabayashi Co., Ltd.

Interest Coverage Ratio

Highest at 6,126.92

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 14.05 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Net Sales

Highest at JPY 17,201 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,593 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 9.26 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 1,277 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,258.04 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -5.37% (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 Nakabayashi Co., Ltd.

Cash and Eqv

Lowest at JPY 13,041 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents