Nichicon Corp. (6996) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hosiden Corp.

HIROSE ELECTRIC CO., LTD.

Citizen Watch Co., Ltd.

TDK Corp.

Nichicon Corp.

Japan Aviation Electronics Industry Ltd.

Taiyo Yuden Co., Ltd.

IBIDEN Co., Ltd.

Shinko Electric Industries Co., Ltd.

Hamamatsu Photonics KK

Japan Display, Inc.

Why is Nichicon Corp. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 94.96

Healthy long term growth as Net Sales has grown by an annual rate of 7.99% and Operating profit at 15.34%

Negative results in Jun 25

INTEREST(HY) At JPY 127 MM has Grown at 139.62%
NET PROFIT(HY) At JPY 1,537 MM has Grown at -37.45%
ROCE(HY) Lowest at 4.74%

With ROE of 7.46%, it has a very attractive valuation with a 0.83 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 58.69%, its profits have fallen by -12.9%
At the current price, the company has a high dividend yield of 0

Market Beating Performance

The stock has generated a return of 58.69% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nichicon Corp. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Nichicon Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Nichicon Corp.

58.69%

1.01

44.29%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.99%

EBIT Growth (5y)

15.34%

EBIT to Interest (avg)

94.96

Debt to EBITDA (avg)

0.38

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

1.28

Tax Ratio

25.26%

Dividend Payout Ratio

40.68%

Pledged Shares

Institutional Holding

ROCE (avg)

6.50%

ROE (avg)

8.39%

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

0.83

EV to EBIT

17.56

EV to EBITDA

6.68

EV to Capital Employed

0.83

EV to Sales

0.52

PEG Ratio

Dividend Yield

0.04%

ROCE (Latest)

4.74%

ROE (Latest)

7.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -16.13% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.1%

-20What is not working for the Company

INTEREST(HY)

At JPY 127 MM has Grown at 139.62%

NET PROFIT(HY)

At JPY 1,537 MM has Grown at -37.45%

ROCE(HY)

Lowest at 4.74%

NET SALES(Q)

At JPY 39,601 MM has Fallen at -9.87%

INTEREST COVERAGE RATIO(Q)

Lowest at 4,266.67

PRE-TAX PROFIT(Q)

At JPY 1,262 MM has Fallen at -50%

Here's what is working for Nichicon Corp.

Inventory Turnover Ratio

Highest at 4.1%

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 -16.13% (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 Nichicon Corp.

Interest

At JPY 127 MM has Grown at 139.62%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 39,601 MM has Fallen at -9.87%

over average net sales of the previous four periods of JPY 43,937.75 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest Coverage Ratio

Lowest at 4,266.67

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At JPY 1,262 MM has Fallen at -50%

over average net sales of the previous four periods of JPY 2,523.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Sales

Lowest at JPY 39,601 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Profit

At JPY 1,188 MM has Fallen at -36.7%

over average net sales of the previous four periods of JPY 1,876.75 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)