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

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Parker Corp.

Gun Ei Chemical Industry Co., Ltd.

Tomoe Engineering Co., Ltd.

Nicca Chemical Co., Ltd.

Arakawa Chemical Industries Ltd.

Okura Industrial Co., Ltd.

Keiyo Gas Co., Ltd.

Why is Nicca Chemical Co., Ltd. ?

Flat results in Mar 26

DEBT-EQUITY RATIO (HY) Highest at 18.97 %
INTEREST COVERAGE RATIO(Q) Lowest at 2,907.02
INTEREST(Q) Highest at JPY 57 MM

With ROE of 7.64%, it has a very attractive valuation with a 0.87 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 30.93%, its profits have fallen by -11%

Underperformed the market in the last 1 year

The stock has generated a return of 30.93% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 69.64%

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, Low Return

Absolute

Risk Adjusted

Volatility

Nicca Chemical Co., Ltd.

31.57%

1.99

24.88%

Japan Nikkei 225

71.75%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.23%

EBIT Growth (5y)

22.12%

EBIT to Interest (avg)

60.04

Debt to EBITDA (avg)

0.68

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

1.20

Tax Ratio

23.45%

Dividend Payout Ratio

39.93%

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

0.87

EV to EBIT

9.72

EV to EBITDA

6.26

EV to Capital Employed

0.89

EV to Sales

0.67

PEG Ratio

Dividend Yield

ROCE (Latest)

9.19%

ROE (Latest)

7.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

11What is working for the Company

ROCE(HY)

Highest at 8.87%

NET SALES(Q)

Highest at JPY 15,017 MM

RAW MATERIAL COST(Y)

Fallen by 0.96% (YoY

CASH AND EQV(HY)

Highest at JPY 23,613 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.32 times

OPERATING PROFIT(Q)

Highest at JPY 1,657 MM

PRE-TAX PROFIT(Q)

Highest at JPY 1,184 MM

NET PROFIT(Q)

Highest at JPY 913.95 MM

EPS(Q)

Highest at JPY 57.73

-15What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 18.97 %

INTEREST COVERAGE RATIO(Q)

Lowest at 2,907.02

INTEREST(Q)

Highest at JPY 57 MM

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

Net Sales

Highest at JPY 15,017 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,657 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 1,184 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 913.95 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 57.73

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 23,613 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.32 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 0.96% (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 57 MM has Grown at 42.5%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,907.02

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 18.97 % and Grown

In each half year 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

Interest

Highest at JPY 57 MM

in the last five periods and Increased by 42.5% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)