NICHIDEN Corp. (9902) 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

Mitani Corp.

Yuasa Trading Co., Ltd.

Taikisha Ltd.

Sangetsu Corp.

ARE Holdings, Inc.

Yamazen Corp.

SAN-AI OBBLI Co., Ltd.

NICHIDEN Corp.

Yellow Hat Ltd.

Trusco Nakayama Corp.

Autobacs Seven Co., Ltd.

Why is NICHIDEN Corp. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 45.64

Poor long term growth as Net Sales has grown by an annual rate of 6.20% and Operating profit at 10.61% over the last 5 years

With a growth in Net Profit of 36.95%, the company declared Very Positive results in Mar 26

INVENTORY TURNOVER RATIO(HY) Highest at 7.65 times
INTEREST COVERAGE RATIO(Q) Highest at 7,488.24
RAW MATERIAL COST(Y) Fallen by 1.78% (YoY)

With ROE of 5.37%, it has a very attractive valuation with a 0.82 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 -5.72%, its profits have risen by 6% ; the PEG ratio of the company is 1.7
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -5.72% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to NICHIDEN Corp. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is NICHIDEN Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

NICHIDEN Corp.

-5.72%

-1.29

20.39%

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)

6.20%

EBIT Growth (5y)

10.61%

EBIT to Interest (avg)

45.64

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

1.52

Tax Ratio

32.26%

Dividend Payout Ratio

45.65%

Pledged Shares

Institutional Holding

ROCE (avg)

9.36%

ROE (avg)

5.08%

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

0.82

EV to EBIT

7.30

EV to EBITDA

5.96

EV to Capital Employed

0.74

EV to Sales

0.34

PEG Ratio

1.67

Dividend Yield

ROCE (Latest)

10.18%

ROE (Latest)

5.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly 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

10What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 7.65 times

INTEREST COVERAGE RATIO(Q)

Highest at 7,488.24

RAW MATERIAL COST(Y)

Fallen by 1.78% (YoY

NET SALES(Q)

Highest at JPY 38,190 MM

OPERATING PROFIT(Q)

Highest at JPY 2,546 MM

PRE-TAX PROFIT(Q)

Highest at JPY 2,345 MM

NET PROFIT(Q)

Highest at JPY 1,690 MM

EPS(Q)

Highest at JPY 57.21

-2What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 61.17%

DIVIDEND PER SHARE(HY)

Lowest at JPY 3.29

Here's what is working for NICHIDEN Corp.

Interest Coverage Ratio

Highest at 7,488.24

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Inventory Turnover Ratio

Highest at 7.65 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at JPY 38,190 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 2,546 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 2,345 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 1,690 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 57.21

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by 1.78% (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 NICHIDEN Corp.

Dividend per share

Lowest at JPY 3.29

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (JPY)

Dividend Payout Ratio

Lowest at 61.17%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)