Nichia Steel Works, Ltd. (5658) 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

Chubu Steel Plate Co., Ltd.

Pacific Metals Co., Ltd.

Canox Corp.

Aichi Steel Corp.

Kurimoto Ltd.

Mory Industries Inc.

Nakayama Steel Works, Ltd.

Nichia Steel Works, Ltd.

Tokyo Tekko Co., Ltd.

Nippon Yakin Kogyo Co., Ltd.

OSAKA STEEL CO., LTD.

Why is Nichia Steel Works, Ltd. ?

Poor Management Efficiency with a low ROE of 2.98%

The company has been able to generate a Return on Equity (avg) of 2.98% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.02% over the last 5 years

Underperformed the market in the last 1 year

The stock has generated a return of 14.75% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Nichia Steel Works, Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nichia Steel Works, Ltd.

13.44%

0.35

28.85%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.02%

EBIT Growth (5y)

-2.00%

EBIT to Interest (avg)

84.18

Debt to EBITDA (avg)

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

Institutional Holding

ROCE (avg)

4.03%

ROE (avg)

2.98%

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

0.37

EV to EBIT

7.99

EV to EBITDA

3.64

EV to Capital Employed

0.22

EV to Sales

0.28

PEG Ratio

Dividend Yield

ROCE (Latest)

2.77%

ROE (Latest)

1.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

14What is working for the Company

NET PROFIT(Q)

At JPY 562.89 MM has Grown at 342.33%

PRE-TAX PROFIT(Q)

At JPY 485.4 MM has Grown at 147.03%

RAW MATERIAL COST(Y)

Fallen by -15.77% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.54 times

OPERATING PROFIT(Q)

Highest at JPY 865.54 MM

OPERATING PROFIT MARGIN(Q)

Highest at 10.11 %

-9What is not working for the Company

INTEREST(HY)

At JPY 11.2 MM has Grown at 158.55%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 53.61%

Here's what is working for Nichia Steel Works, Ltd.

Net Profit

At JPY 562.89 MM has Grown at 342.33%

over average net sales of the previous four periods of JPY 127.26 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 485.4 MM has Grown at 147.03%

over average net sales of the previous four periods of JPY 196.49 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Operating Profit

Highest at JPY 865.54 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 10.11 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Inventory Turnover Ratio

Highest at 2.54 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 -15.77% (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.

Interest

At JPY 11.2 MM has Grown at 158.55%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Dividend Payout Ratio

Lowest at 53.61%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)