NH Foods Ltd. (2282) 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

Marudai Food Co., Ltd.

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Maruha Nichiro Corp.

Starzen Co., Ltd.

Nissui Corp.

Ezaki Glico Co., Ltd.

Yakult Honsha Co., Ltd.

NH Foods Ltd.

Morinaga Milk Industry Co., Ltd.

Why is NH Foods Ltd. ?

The company is Net-Debt Free

The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.93% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.82% and Operating profit at 1.56% over the last 5 years

Negative results in Jun 26

INTEREST(HY) At JPY 2,440 MM has Grown at 34.96%
RAW MATERIAL COST(Y) Grown by 8.42% (YoY)
CASH AND EQV(HY) Lowest at JPY 127,000 MM

With ROCE of 7.07%, it has a expensive valuation with a 1.04 Enterprise value to Capital Employed

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 14.76%, its profits have risen by 13.2% ; the PEG ratio of the company is 1

Underperformed the market in the last 1 year

The stock has generated a return of 14.76% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

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 FMCG)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is NH Foods Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

NH Foods Ltd.

14.76%

0.91

27.79%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.82%

EBIT Growth (5y)

1.56%

EBIT to Interest (avg)

10.03

Debt to EBITDA (avg)

1.71

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

1.82

Tax Ratio

31.55%

Dividend Payout Ratio

44.31%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

5.65%

ROE (avg)

5.93%

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

1.06

EV to EBIT

14.76

EV to EBITDA

7.83

EV to Capital Employed

1.04

EV to Sales

0.52

PEG Ratio

0.99

Dividend Yield

ROCE (Latest)

7.07%

ROE (Latest)

6.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

3What is working for the Company

ROCE(HY)

Highest at 6.52%

DEBTORS TURNOVER RATIO(HY)

Highest at 9.79 times

-11What is not working for the Company

INTEREST(HY)

At JPY 2,440 MM has Grown at 34.96%

RAW MATERIAL COST(Y)

Grown by 8.42% (YoY

CASH AND EQV(HY)

Lowest at JPY 127,000 MM

DEBT-EQUITY RATIO (HY)

Highest at 36.46 %

Here's what is working for NH Foods Ltd.

Debtors Turnover Ratio

Highest at 9.79 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for NH Foods Ltd.

Interest

At JPY 2,440 MM has Grown at 34.96%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 127,000 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 36.46 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 8.42% (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