Nicca Chemical Co., Ltd. (4463) 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.

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Parker Corp.

Gun Ei Chemical Industry Co., Ltd.

Tomoe Engineering Co., Ltd.

Arakawa Chemical Industries Ltd.

Nicca Chemical Co., Ltd.

Okura Industrial Co., Ltd.

Keiyo Gas Co., Ltd.

Why is Nicca Chemical Co., Ltd. ?

Negative results in Dec 25

INTEREST COVERAGE RATIO(Q) Lowest at 3,742.5
DEBT-EQUITY RATIO (HY) Highest at 19 %
DEBTORS TURNOVER RATIO(HY) Lowest at 4.66 times

With ROE of 9.32%, it has a very attractive valuation with a 0.70 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 23.69%, its profits have risen by 31.4% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 23.69% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 40.96%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nicca Chemical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

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

Is Nicca Chemical Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Nicca Chemical Co., Ltd.

23.69%

2.09

23.17%

Japan Nikkei 225

41.2%

1.44

28.42%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.07%

EBIT Growth (5y)

22.00%

EBIT to Interest (avg)

60.04

Debt to EBITDA (avg)

0.68

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

1.24

Tax Ratio

23.45%

Dividend Payout Ratio

29.87%

Pledged Shares

Institutional Holding

ROCE (avg)

8.11%

ROE (avg)

7.92%

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

0.70

EV to EBIT

6.34

EV to EBITDA

4.00

EV to Capital Employed

0.72

EV to Sales

0.44

PEG Ratio

0.24

Dividend Yield

ROCE (Latest)

11.30%

ROE (Latest)

9.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.07% (YoY

CASH AND EQV(HY)

Highest at JPY 23,182 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.3 times

DIVIDEND PER SHARE(HY)

Highest at JPY 4.66

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 3,742.5

DEBT-EQUITY RATIO (HY)

Highest at 19 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.66 times

INTEREST(Q)

Highest at JPY 40 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.33 %

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

Cash and Eqv

Highest at JPY 23,182 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.3 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 4.66

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -4.07% (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 Nicca Chemical Co., Ltd.

Interest

At JPY 40 MM has Grown at 14.29%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 3,742.5

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 40 MM

in the last five periods and Increased by 14.29% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 10.33 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 19 %

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 4.66 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio