Why is NEC Networks & System Integration Corp. ?
1
The company has declared Positive results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at JPY 31,603 MM
- ROCE(HY) Highest at 11.64%
- INTEREST COVERAGE RATIO(Q) Highest at 16,072.88
2
With ROE of 12.3, it has a fair valuation with a 3.2 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 0%, its profits have risen by 20.7% ; the PEG ratio of the company is 1.2
- At the current price, the company has a high dividend yield of 0
How much should you buy?
- Overall Portfolio exposure to NEC Networks & System Integration Corp. should be less than 10%
- Overall Portfolio exposure to Information Technology Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Information Technology Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is NEC Networks & System Integration Corp. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
NEC Networks & System Integration Corp.
25.14%
0.89
28.16%
Japan Nikkei 225
28.54%
-0.05
30.75%
Quality key factors
Factor
Value
Sales Growth (5y)
4.54%
EBIT Growth (5y)
14.60%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.43
Sales to Capital Employed (avg)
2.22
Tax Ratio
33.22%
Dividend Payout Ratio
47.62%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
32.49%
ROE (avg)
11.90%
Valuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
Price to Book Value
3.16
EV to EBIT
14.55
EV to EBITDA
12.87
EV to Capital Employed
4.82
EV to Sales
1.13
PEG Ratio
1.24
Dividend Yield
0.02%
ROCE (Latest)
33.09%
ROE (Latest)
12.29%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Movement
Not enough Data to analyse Financial Trend
Not enough Data to analyse Financial Trend
Here's what is working for NEC Networks & System Integration Corp.
Interest Coverage Ratio
Highest at 16,072.88
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Cash Flow
Highest at JPY 31,603 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Cash and Eqv
Highest at JPY 169,198 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -14.52% (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






