Nakanishi Manufacturing Co., Ltd. (5941) 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

Punch Industry Co., Ltd.

Yamada Corp.

Kanefusa Corp.

Tacmina Corp.

Yoshitake Inc

OVAL Corp.

Fujimak Corp.

Nakanishi Manufacturing Co., Ltd.

Micron Machinery Co., Ltd.

Nakakita Seisakusho Co., Ltd.

A-One Seimitsu, Inc.

Why is Nakanishi Manufacturing Co., Ltd. ?

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

Low Debt Company with Strong Long Term Fundamental Strength

Negative results in Jun 25

CASH AND EQV(HY) Lowest at JPY 5,043.17 MM
DEBT-EQUITY RATIO (HY) Highest at -6.2 %
NET SALES(Q) Lowest at JPY 5,205.93 MM

With ROE of 8.82%, it has a very attractive valuation with a 0.75 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 -3.08%, its profits have risen by 18.8% ; the PEG ratio of the company is 0.5

Below par performance in long term as well as near term

Along with generating -3.08% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nakanishi Manufacturing Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Nakanishi Manufacturing Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nakanishi Manufacturing Co., Ltd.

-1.71%

1.16

13.49%

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)

6.39%

EBIT Growth (5y)

15.62%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.05

Sales to Capital Employed (avg)

1.84

Tax Ratio

33.78%

Dividend Payout Ratio

30.23%

Pledged Shares

Institutional Holding

ROCE (avg)

11.06%

ROE (avg)

6.63%

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

0.75

EV to EBIT

5.40

EV to EBITDA

4.47

EV to Capital Employed

0.73

EV to Sales

0.36

PEG Ratio

0.45

Dividend Yield

ROCE (Latest)

13.61%

ROE (Latest)

8.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

RAW MATERIAL COST(Y)

Fallen by -3.77% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 11.04%

-17What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 5,043.17 MM

DEBT-EQUITY RATIO (HY)

Highest at -6.2 %

NET SALES(Q)

Lowest at JPY 5,205.93 MM

INTEREST(Q)

Highest at JPY 1.84 MM

OPERATING PROFIT(Q)

Lowest at JPY -538.33 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -10.34 %

PRE-TAX PROFIT(Q)

Lowest at JPY -611.59 MM

NET PROFIT(Q)

Lowest at JPY -445.78 MM

EPS(Q)

Lowest at JPY -71.19

Here's what is working for Nakanishi Manufacturing Co., Ltd.

Debtors Turnover Ratio

Highest at 11.04%

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 -3.77% (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 Nakanishi Manufacturing Co., Ltd.

Net Sales

Lowest at JPY 5,205.93 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 1.84 MM

in the last five periods and Increased by 8.72% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY -538.33 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -10.34 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -611.59 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -445.78 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -71.19

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 5,043.17 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -6.2 %

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