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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Yamada Corp.

Yoshitake Inc

Nakanishi Manufacturing Co., Ltd.

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Nakakita Seisakusho Co., Ltd.

Fujimak Corp.

Punch Industry Co., Ltd.

A-One Seimitsu, Inc.

Micron Machinery Co., Ltd.

Tacmina Corp.

Why is Nakanishi Manufacturing Co., Ltd. ?

Poor Management Efficiency with a low ROE of 6.66%

The company has been able to generate a Return on Equity (avg) of 6.66% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 13.96% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 6.66% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 13.96% of over the last 5 years

Flat results in Mar 26

DEBT-EQUITY RATIO (HY) Highest at 2.51 %
DIVIDEND PAYOUT RATIO(Y) Lowest at 37.9%
DEBTORS TURNOVER RATIO(HY) Lowest at 4.4 times

With ROE of 7.00%, it has a very attractive valuation with a 0.78 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 9.34%, its profits have fallen by -25.2%

Underperformed the market in the last 1 year

The stock has generated a return of 9.34% 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 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.

9.34%

1.95

14.07%

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)

6.10%

EBIT Growth (5y)

13.96%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

1.80

Tax Ratio

29.41%

Dividend Payout Ratio

30.83%

Pledged Shares

Institutional Holding

ROCE (avg)

11.92%

ROE (avg)

6.66%

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

0.78

EV to EBIT

7.70

EV to EBITDA

6.05

EV to Capital Employed

0.77

EV to Sales

0.40

PEG Ratio

Dividend Yield

ROCE (Latest)

10.04%

ROE (Latest)

7.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

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

17What is working for the Company

ROCE(HY)

Highest at 10.3%

RAW MATERIAL COST(Y)

Fallen by -11.53% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 7.81 times

DIVIDEND PER SHARE(HY)

Highest at JPY 4.4

NET SALES(Q)

Highest at JPY 15,323.17 MM

OPERATING PROFIT(Q)

Highest at JPY 2,637.34 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.21 %

PRE-TAX PROFIT(Q)

Highest at JPY 2,487.69 MM

NET PROFIT(Q)

Highest at JPY 1,827.27 MM

EPS(Q)

Highest at JPY 290.26

-17What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 2.51 %

DIVIDEND PAYOUT RATIO(Y)

Lowest at 37.9%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.4 times

INTEREST(Q)

Highest at JPY 10.14 MM

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

Net Sales

Highest at JPY 15,323.17 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 15,323.17 MM has Grown at 18.74%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 2,637.34 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 17.21 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 2,487.69 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 2,487.69 MM has Grown at 65.63%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,827.27 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 1,827.27 MM has Grown at 79.57%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 290.26

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 7.81 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 4.4

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -11.53% (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

Depreciation

Highest at JPY 149.32 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 Nakanishi Manufacturing Co., Ltd.

Interest

At JPY 10.14 MM has Grown at 141.06%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 2.51 % and Grown

In each half year 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

Interest

Highest at JPY 10.14 MM

in the last five periods and Increased by 141.06% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 4.4 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 37.9%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)