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

Harima Chemicals Group, Inc.

Nankai Chemical Co., Ltd.

DKS Co., Ltd.

Rasa Industries, Ltd.

MORESCO Corp.

Parker Corp.

Fukuvi Chemical Industry Co., Ltd.

Arakawa Chemical Industries Ltd.

Nicca Chemical Co., Ltd.

Toho Acetylene Co., Ltd.

New Japan Chemical 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)

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)

With a fall in Operating Profit of -31.62%, the company declared Very Negative results in Dec 25

PRE-TAX PROFIT(Q) At JPY 126 MM has Fallen at -62.56%
NET PROFIT(Q) At JPY 79.49 MM has Fallen at -73.29%
INTEREST COVERAGE RATIO(Q) Lowest at 1,300

Real-Time Research Report

Verdict Report

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

New Japan Chemical Co., Ltd.

0.49%

0.28

38.62%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

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)

1.27

Tax Ratio

21.44%

Dividend Payout Ratio

28.57%

Pledged Shares

Institutional Holding

ROCE (avg)

2.45%

ROE (avg)

4.86%

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

0.40

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%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bullish

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

2What is working for the Company

CASH AND EQV(HY)

Highest at JPY 11,314 MM

DEBT-EQUITY RATIO (HY)

Lowest at 11.89 %

-27What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 126 MM has Fallen at -62.56%

NET PROFIT(Q)

At JPY 79.49 MM has Fallen at -73.29%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,300

RAW MATERIAL COST(Y)

Grown by 15.98% (YoY

INTEREST(Q)

Highest at JPY 22 MM

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

Cash and Eqv

Highest at JPY 11,314 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 11.89 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for New Japan Chemical Co., Ltd.

Pre-Tax Profit

At JPY 126 MM has Fallen at -62.56%

over average net sales of the previous four periods of JPY 336.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 79.49 MM has Fallen at -73.29%

over average net sales of the previous four periods of JPY 297.62 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 22 MM has Grown at 69.23%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,300

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 22 MM

in the last five periods and Increased by 69.23% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 15.98% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales