ScoreWhy is Natoco Co., Ltd. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Operating profit has grown by an annual rate -3.71% of over the last 5 years
3
Positive results in Oct 25
- RAW MATERIAL COST(Y) Fallen by -3.17% (YoY)
- INVENTORY TURNOVER RATIO(HY) Highest at 7.59 times
- PRE-TAX PROFIT(Q) Highest at JPY 476.58 MM
4
With ROE of 4.21%, it has a fair valuation with a 0.60 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 16.82%, its profits have fallen by -5.1%
- At the current price, the company has a high dividend yield of 0
5
Underperformed the market in the last 1 year
- The stock has generated a return of 16.82% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 69.82%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Natoco Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Other Industrial Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Industrial Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Natoco Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Natoco Co., Ltd.
-100.0%
0.43
27.05%
Japan Nikkei 225
66.43%
2.73
25.54%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.92%
EBIT Growth (5y)
-3.71%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.48
Sales to Capital Employed (avg)
0.90
Tax Ratio
30.80%
Dividend Payout Ratio
36.51%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
13.01%
ROE (avg)
5.57%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
0.60
EV to EBIT
2.58
EV to EBITDA
1.68
EV to Capital Employed
0.26
EV to Sales
0.16
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
10.21%
ROE (Latest)
4.21%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -3.17% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 7.59 times
PRE-TAX PROFIT(Q)
Highest at JPY 476.58 MM
NET PROFIT(Q)
Highest at JPY 352.02 MM
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Natoco Co., Ltd.
Pre-Tax Profit
Highest at JPY 476.58 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 352.02 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Inventory Turnover Ratio
Highest at 7.59 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -3.17% (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
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