ScoreWhy is NEC Corp. ?
1
Weak Long Term Fundamental Strength with a 3.52% CAGR growth in Net Sales over the last 5 years
2
Poor long term growth as Net Sales has grown by an annual rate of 3.52% over the last 5 years
3
Flat results in Jun 26
- INTEREST(HY) At JPY 15,429 MM has Grown at 33.2%
4
With ROE of 12.29%, it has a attractive valuation with a 2.54 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 3.84%, its profits have risen by 27.4%
- At the current price, the company has a high dividend yield of 0
5
Majority shareholders : Non Institution
6
Underperformed the market in the last 1 year
- The stock has generated a return of 3.84% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to NEC Corp. should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is NEC Corp. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
NEC Corp.
3.84%
1.94
50.22%
Japan Nikkei 225
59.79%
2.03
29.50%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.52%
EBIT Growth (5y)
25.64%
EBIT to Interest (avg)
16.42
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.02
Sales to Capital Employed (avg)
1.44
Tax Ratio
31.63%
Dividend Payout Ratio
18.72%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
12.44%
ROE (avg)
9.74%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
2.54
EV to EBIT
15.44
EV to EBITDA
10.53
EV to Capital Employed
2.58
EV to Sales
1.48
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
16.71%
ROE (Latest)
12.29%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
ROCE(HY)
Highest at 14.57%
NET PROFIT(Q)
At JPY 56,300.64 MM has Grown at 191.55%
RAW MATERIAL COST(Y)
Fallen by -8.66% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 9.79 times
PRE-TAX PROFIT(Q)
At JPY 63,785 MM has Grown at 105.55%
-4What is not working for the Company
INTEREST(HY)
At JPY 15,429 MM has Grown at 33.2%
Here's what is working for NEC Corp.
Net Profit
At JPY 56,300.64 MM has Grown at 191.55%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Pre-Tax Profit
At JPY 63,785 MM has Grown at 105.55%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Inventory Turnover Ratio
Highest at 9.79 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 -8.66% (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 NEC Corp.
Interest
At JPY 15,429 MM has Grown at 33.2%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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