Nankai Electric Railway Co., Ltd. (9044) 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

AZ-COM Maruwa Holdings, Inc.

Sankyu, Inc.

Central Japan Railway Co.

Kamigumi Co., Ltd.

Japan Airport Terminal Co., Ltd.

Hankyu Hanshin Holdings, Inc.

Nankai Electric Railway Co., Ltd.

Tokyu Corp.

Kintetsu Group Holdings Co., Ltd.

Nagoya Railroad Co., Ltd.

Sotetsu Holdings, Inc.

Why is Nankai Electric Railway Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.00%

The company has been able to generate a Return on Capital Employed (avg) of 3.00% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 2.72% and Operating profit at -0.32% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 3.00% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 2.72% and Operating profit at -0.32% over the last 5 years

Flat results in Dec 25

INVENTORY TURNOVER RATIO(HY) Lowest at 5.62 times
INTEREST(Q) Highest at JPY 1,091 MM

With ROCE of 4.94%, it has a expensive valuation with a 0.90 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 17.17%, its profits have fallen by -9.7%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Nankai Electric Railway Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nankai Electric Railway Co., Ltd.

17.17%

0.67

20.90%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.72%

EBIT Growth (5y)

-0.32%

EBIT to Interest (avg)

6.12

Debt to EBITDA (avg)

9.19

Net Debt to Equity (avg)

1.25

Sales to Capital Employed (avg)

0.34

Tax Ratio

31.37%

Dividend Payout Ratio

20.13%

Pledged Shares

Institutional Holding

ROCE (avg)

3.00%

ROE (avg)

5.05%

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

18.23

EV to EBITDA

10.01

EV to Capital Employed

0.90

EV to Sales

2.42

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

4.94%

ROE (Latest)

7.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -6.93% (YoY

OPERATING PROFIT(Q)

Highest at JPY 19,584 MM

PRE-TAX PROFIT(Q)

Highest at JPY 12,412 MM

NET PROFIT(Q)

Highest at JPY 8,172.93 MM

EPS(Q)

Highest at JPY 75.34

-10What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.62 times

INTEREST(Q)

Highest at JPY 1,091 MM

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

Operating Profit

Highest at JPY 19,584 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 12,412 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 8,172.93 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 75.34

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -6.93% (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

Here's what is not working for Nankai Electric Railway Co., Ltd.

Interest

Highest at JPY 1,091 MM

in the last five periods and Increased by 7.7% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 5.62 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio