Comparison
Company
Score
Quality
Valuation
Financial
Technical
Why is New Japan Chemical Co., Ltd. ?
1
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)
2
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Operating profit has grown by an annual rate 14.11% of 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 2.45% signifying low profitability per unit of total capital (equity and debt)
3
The company has declared negative results in Mar'2025 after 5 consecutive positive quarters
- INTEREST(HY) At JPY 27 MM has Grown at 22.73%
4
With ROE of 7.44%, it has a very attractive valuation with a 0.40 Price to Book Value
- Over the past year, while the stock has generated a return of 9.50%, its profits have risen by 111.5% ; the PEG ratio of the company is 0.1
- At the current price, the company has a high dividend yield of 0.3
5
Underperformed the market in the last 1 year
- The stock has generated a return of 9.50% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%
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 Specialty Chemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is New Japan Chemical Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
New Japan Chemical Co., Ltd.
9.5%
0.55
33.39%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
4.03%
EBIT Growth (5y)
14.11%
EBIT to Interest (avg)
7.28
Debt to EBITDA (avg)
8.43
Net Debt to Equity (avg)
0.24
Sales to Capital Employed (avg)
1.28
Tax Ratio
21.44%
Dividend Payout Ratio
28.57%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.45%
ROE (avg)
4.86%
Valuation Key Factors 
Factor
Value
P/E Ratio
5
Industry P/E
Price to Book Value
0.40
EV to EBIT
13.54
EV to EBITDA
6.94
EV to Capital Employed
0.51
EV to Sales
0.34
PEG Ratio
0.05
Dividend Yield
0.26%
ROCE (Latest)
3.78%
ROE (Latest)
7.44%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Movement
5What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 3.46%
RAW MATERIAL COST(Y)
Fallen by -13.6% (YoY
NET PROFIT(9M)
Higher at JPY 1,213.47 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 16.83 %
-8What is not working for the Company
INTEREST(HY)
At JPY 27 MM has Grown at 22.73%
Here's what is working for New Japan Chemical Co., Ltd.
Debtors Turnover Ratio
Highest at 3.46% and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Debt-Equity Ratio
Lowest at 16.83 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Profit
Higher at JPY 1,213.47 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (JPY MM)
Raw Material Cost
Fallen by -13.6% (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 27 MM has Grown at 22.73%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






