ScoreWhy is Nichia Steel Works, Ltd. ?
1
Poor Management Efficiency with a low ROE of 3.08%
- The company has been able to generate a Return on Equity (avg) of 3.08% signifying low profitability per unit of shareholders funds
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 84.18
3
Poor long term growth as Net Sales has grown by an annual rate of 1.98% over the last 5 years
4
Negative results in Jun 25
- NET PROFIT(HY) At JPY 345.8 MM has Grown at -56.46%
- ROCE(HY) Lowest at 1.99%
- INTEREST COVERAGE RATIO(Q) Lowest at 8,690.15
5
With ROE of 2.47%, it has a very attractive valuation with a 0.30 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 30.56%, its profits have fallen by -10.8%
- At the current price, the company has a high dividend yield of 0.2
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Nichia Steel Works, Ltd. should be less than 10%
- Overall Portfolio exposure to Ferrous Metals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nichia Steel Works, Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Nichia Steel Works, Ltd.
-100.0%
0.85
27.61%
Japan Nikkei 225
38.88%
1.45
26.59%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.98%
EBIT Growth (5y)
-5.07%
EBIT to Interest (avg)
84.18
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.18
Sales to Capital Employed (avg)
0.62
Tax Ratio
24.16%
Dividend Payout Ratio
44.49%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.03%
ROE (avg)
3.08%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
0.30
EV to EBIT
4.87
EV to EBITDA
2.38
EV to Capital Employed
0.15
EV to Sales
0.19
PEG Ratio
NA
Dividend Yield
0.16%
ROCE (Latest)
3.16%
ROE (Latest)
2.47%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -0.06% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at -21.26 %
-19What is not working for the Company
NET PROFIT(HY)
At JPY 345.8 MM has Grown at -56.46%
ROCE(HY)
Lowest at 1.99%
INTEREST COVERAGE RATIO(Q)
Lowest at 8,690.15
NET SALES(Q)
Lowest at JPY 8,225.26 MM
INTEREST(Q)
Highest at JPY 6.31 MM
OPERATING PROFIT(Q)
Lowest at JPY 548.7 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 6.67 %
Here's what is working for Nichia Steel Works, Ltd.
Debt-Equity Ratio
Lowest at -21.26 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -0.06% (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 Nichia Steel Works, Ltd.
Net Profit
At JPY 345.8 MM has Grown at -56.46%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 6.31 MM has Grown at 302.42%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 8,690.15
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales
Lowest at JPY 8,225.26 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Interest
Highest at JPY 6.31 MM
in the last five periods and Increased by 302.42% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit
Lowest at JPY 548.7 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 6.67 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
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