Nankai Chemical Co., Ltd. () 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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Nankai Chemical Co., Ltd.

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Arakawa Chemical Industries Ltd.

Nicca Chemical Co., Ltd.

Toho Acetylene Co., Ltd.

Why is Nankai Chemical Co., Ltd. ?

High Management Efficiency with a high ROCE of 12.82%

With a growth in Net Profit of 482.69%, the company declared Outstanding results in Dec 25

The company has declared positive results in Jan 70 after 3 consecutive negative quarters
ROCE(HY) Highest at 27.81%
INTEREST COVERAGE RATIO(Q) Highest at 5,228.57
RAW MATERIAL COST(Y) Fallen by -2.63% (YoY)

With ROCE of 10.84%, it has a very attractive valuation with a 0.92 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 23.89%, its profits have fallen by -14%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Nankai Chemical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

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

Is Nankai Chemical Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nankai Chemical Co., Ltd.

-100.0%

0.03

48.36%

Japan Nikkei 225

41.2%

1.45

28.34%

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)

15.61%

EBIT to Interest (avg)

28.24

Debt to EBITDA (avg)

1.36

Net Debt to Equity (avg)

0.43

Sales to Capital Employed (avg)

1.54

Tax Ratio

21.97%

Dividend Payout Ratio

10.88%

Pledged Shares

Institutional Holding

ROCE (avg)

12.82%

ROE (avg)

14.27%

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

0.89

EV to EBIT

8.52

EV to EBITDA

4.55

EV to Capital Employed

0.92

EV to Sales

0.53

PEG Ratio

Dividend Yield

ROCE (Latest)

10.84%

ROE (Latest)

12.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

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

26What is working for the Company

ROCE(HY)

Highest at 27.81%

INTEREST COVERAGE RATIO(Q)

Highest at 5,228.57

RAW MATERIAL COST(Y)

Fallen by -2.63% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 18.22 %

PRE-TAX PROFIT(Q)

Highest at JPY 2,930 MM

NET PROFIT(Q)

Highest at JPY 1,956.7 MM

EPS(Q)

Highest at JPY 957.07

-3What is not working for the Company

INTEREST(9M)

At JPY 48 MM has Grown at 14.29%

Here's what is working for Nankai Chemical Co., Ltd.

Pre-Tax Profit

At JPY 2,930 MM has Grown at 511.69%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,956.7 MM has Grown at 473.93%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Interest Coverage Ratio

Highest at 5,228.57

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

Highest at JPY 2,930 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 1,956.7 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 957.07

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at 18.22 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -2.63% (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 303 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 Nankai Chemical Co., Ltd.

Interest

At JPY 48 MM has Grown at 14.29%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)