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.

Canox Corp.

Pacific Metals Co., Ltd.

Nippon Yakin Kogyo Co., Ltd.

Kurimoto Ltd.

Mory Industries Inc.

Aichi Steel Corp.

Nichia Steel Works, Ltd.

Nakayama Steel Works, Ltd.

Tokyo Tekko 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

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 2.98%

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

With ROE of 1.13%, it has a attractive valuation with a 0.34 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 17.90%, its profits have fallen by -61.6%
At the current price, the company has a high dividend yield of 0

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.

18.94%

0.70

28.85%

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)

4.02%

EBIT Growth (5y)

-2.00%

EBIT to Interest (avg)

88.19

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

0.62

Tax Ratio

6.24%

Dividend Payout Ratio

45.00%

Pledged Shares

Institutional Holding

ROCE (avg)

3.86%

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

0.34

EV to EBIT

6.59

EV to EBITDA

3.00

EV to Capital Employed

0.18

EV to Sales

0.23

PEG Ratio

Dividend Yield

ROCE (Latest)

2.77%

ROE (Latest)

1.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

17What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 939.41 MM has Grown at 173.99%

NET PROFIT(Q)

At JPY 573.09 MM has Grown at 125.21%

RAW MATERIAL COST(Y)

Fallen by -11.28% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.57 times

DEBTORS TURNOVER RATIO(HY)

Highest at 2.94 times

EPS(Q)

Highest at JPY 12.14

-12What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 23,220.22 MM

INTEREST(Q)

Highest at JPY 6.54 MM

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

Pre-Tax Profit

At JPY 939.41 MM has Grown at 173.99%

over average net sales of the previous four periods of JPY 342.86 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 573.09 MM has Grown at 125.21%

over average net sales of the previous four periods of JPY 254.47 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

EPS

Highest at JPY 12.14

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 2.57 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 2.94 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 -11.28% (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 6.54 MM has Grown at 23.43%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 6.54 MM

in the last five periods and Increased by 23.43% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 23,220.22 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents