New Japan Chemical Co., Ltd. (4406) 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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Rasa Industries, Ltd.

Arakawa Chemical Industries Ltd.

Nicca Chemical Co., Ltd.

New Japan Chemical Co., Ltd.

Toho Acetylene Co., Ltd.

Why is New Japan Chemical Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.45%

The company has been able to generate a Return on Capital Employed (avg) of 2.45% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 21.93% of over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Capital Employed (avg) of 2.45% signifying low profitability per unit of total capital (equity and debt)

Positive results in Mar 26

DIVIDEND PAYOUT RATIO(Y) Highest at 62.84%
RAW MATERIAL COST(Y) Fallen by -1.77% (YoY)
CASH AND EQV(HY) Highest at JPY 11,237 MM

With ROE of 4.84%, it has a very expensive valuation with a 0.41 Price to Book Value

Over the past year, while the stock has generated a return of 1.52%, its profits have fallen by -28%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 1.52% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to New Japan 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 New Japan Chemical Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

New Japan Chemical Co., Ltd.

1.52%

0.23

36.81%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.50%

EBIT Growth (5y)

21.93%

EBIT to Interest (avg)

7.28

Debt to EBITDA (avg)

8.43

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

1.26

Tax Ratio

21.44%

Dividend Payout Ratio

28.57%

Pledged Shares

Institutional Holding

ROCE (avg)

2.45%

ROE (avg)

4.81%

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

0.41

EV to EBIT

17.16

EV to EBITDA

7.49

EV to Capital Employed

0.48

EV to Sales

0.32

PEG Ratio

Dividend Yield

ROCE (Latest)

2.78%

ROE (Latest)

4.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

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

12What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 62.84%

RAW MATERIAL COST(Y)

Fallen by -1.77% (YoY

CASH AND EQV(HY)

Highest at JPY 11,237 MM

DEBT-EQUITY RATIO (HY)

Lowest at 8.69 %

PRE-TAX PROFIT(Q)

Highest at JPY 759 MM

NET PROFIT(Q)

Highest at JPY 768 MM

EPS(Q)

Highest at JPY 7.16

-8What is not working for the Company

INTEREST(HY)

At JPY 43 MM has Grown at 53.57%

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

Net Profit

At JPY 768 MM has Grown at 243.43%

over average net sales of the previous four periods of JPY 223.62 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 759 MM has Grown at 192.2%

over average net sales of the previous four periods of JPY 259.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 759 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 768 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 7.16

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 11,237 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 8.69 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 62.84%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -1.77% (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 New Japan Chemical Co., Ltd.

Interest

At JPY 43 MM has Grown at 53.57%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)