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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Niterra Co., Ltd.

Toyoda Gosei Co., Ltd.

NSK Ltd.

Toyota Boshoku Corp.

Aisin Corp.

DENSO Corp.

TOKAI RIKA CO., LTD.

JTEKT Corp.

NHK Spring Co., Ltd.

Koito Manufacturing Co., Ltd.

Stanley Electric Co., Ltd.

Why is NHK Spring Co., Ltd. ?

Weak Long Term Fundamental Strength with a 38.71% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 7.12% and Operating profit at 38.71% over the last 5 years

Positive results in Jun 26

INTEREST COVERAGE RATIO(Q) Highest at 18,258.68
RAW MATERIAL COST(Y) Fallen by -9.9% (YoY)
CASH AND EQV(HY) Highest at JPY 234,292 MM

With ROE of 10.61%, it has a very expensive valuation with a 2.00 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 102.74%, its profits have fallen by -14%
At the current price, the company has a high dividend yield of 0

Consistent Returns over the last 3 years

Along with generating 102.74% 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?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

NHK Spring Co., Ltd.

97.17%

2.33

50.28%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.12%

EBIT Growth (5y)

38.71%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

1.67

Tax Ratio

43.09%

Dividend Payout Ratio

48.01%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

10.35%

ROE (avg)

9.54%

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

2.00

EV to EBIT

17.46

EV to EBITDA

10.86

EV to Capital Employed

2.03

EV to Sales

1.05

PEG Ratio

Dividend Yield

ROCE (Latest)

11.60%

ROE (Latest)

10.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

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

11What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 18,258.68

RAW MATERIAL COST(Y)

Fallen by -9.9% (YoY

CASH AND EQV(HY)

Highest at JPY 234,292 MM

DEBT-EQUITY RATIO (HY)

Lowest at -14.64 %

INVENTORY TURNOVER RATIO(HY)

Highest at 7.49 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.07 times

PRE-TAX PROFIT(Q)

At JPY 20,644 MM has Grown at 71.72%

NET PROFIT(Q)

Highest at JPY 15,727 MM

EPS(Q)

Highest at JPY 77.62

-7What is not working for the Company

INTEREST(HY)

At JPY 305 MM has Grown at 12.96%

ROCE(HY)

Lowest at 8.13%

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

Interest Coverage Ratio

Highest at 18,258.68

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At JPY 20,644 MM has Grown at 71.72%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 15,727 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 15,727 MM has Grown at 75.21%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 77.62

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 234,292 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -14.64 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 7.49 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.07 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -9.9% (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 NHK Spring Co., Ltd.

Interest

At JPY 305 MM has Grown at 12.96%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)