NHK Spring Co., Ltd. (5991) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

JTEKT Corp.

Niterra Co., Ltd.

Toyoda Gosei Co., Ltd.

Aisin Corp.

Toyota Boshoku Corp.

NSK Ltd.

TOKAI RIKA CO., LTD.

Koito Manufacturing Co., Ltd.

Stanley Electric Co., Ltd.

NHK Spring Co., Ltd.

DENSO Corp.

Why is NHK Spring Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Low Debt Company with Strong Long Term Fundamental Strength

Negative results in Jun 25

INTEREST(Q) At JPY 164 MM has Grown at 54.72%
INTEREST COVERAGE RATIO(Q) Lowest at 11,017.68
DEBT-EQUITY RATIO (HY) Highest at -4.94 %

With ROE of 12.08%, it has a very attractive valuation with a 0.95 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 40.69%, its profits have risen by 10.2% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 0

Consistent Returns over the last 3 years

Along with generating 40.69% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to NHK Spring Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is NHK Spring Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

NHK Spring Co., Ltd.

40.69%

1.37

39.54%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.83%

EBIT Growth (5y)

20.28%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

1.70

Tax Ratio

16.21%

Dividend Payout Ratio

30.70%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

8.78%

ROE (avg)

9.55%

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

0.95

EV to EBIT

6.95

EV to EBITDA

4.45

EV to Capital Employed

0.95

EV to Sales

0.45

PEG Ratio

0.77

Dividend Yield

0.03%

ROCE (Latest)

13.68%

ROE (Latest)

12.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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 214,373 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 7.47%

-16What is not working for the Company

INTEREST(Q)

At JPY 164 MM has Grown at 54.72%

INTEREST COVERAGE RATIO(Q)

Lowest at 11,017.68

DEBT-EQUITY RATIO (HY)

Highest at -4.94 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.92%

PRE-TAX PROFIT(Q)

Fallen at -37.4%

NET PROFIT(Q)

Fallen at -40.39%

Here's what is working for NHK Spring Co., Ltd.

Cash and Eqv

Highest at JPY 214,373 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 7.47%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for NHK Spring Co., Ltd.

Interest

At JPY 164 MM has Grown at 54.72%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 11,017.68

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

Fallen at -37.4%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Fallen at -40.39%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -4.94 %

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

Debtors Turnover Ratio

Lowest at 4.92%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio