Nichiha Corp. (7943) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

ASIA PILE HOLDINGS Corp.

Mitani Sekisan Co., Ltd.

Mitsui Matsushima Holdings Co., Ltd.

Maeda Kosen Co., Ltd.

Nichiha Corp.

Sumitomo Osaka Cement Co., Ltd.

TYK Corp.

Taiheiyo Cement Corp.

Vertex Corp.

Nippon Concrete Industries Co., Ltd.

Nippon Hume Corp.

Why is Nichiha Corp. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 82.60

Poor long term growth as Operating profit has grown by an annual rate -13.11% of over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

PRE-TAX PROFIT(Q) At JPY 928 MM has Fallen at -59.9%
ROCE(HY) Lowest at 1.41%
INVENTORY TURNOVER RATIO(HY) Lowest at 3.27%

With ROE of 2.50%, it has a very attractive valuation with a 0.90 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 7.65%, its profits have fallen by -62.7%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 7.65% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nichiha Corp. should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

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

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

Is Nichiha Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nichiha Corp.

7.65%

-0.66

19.44%

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)

3.72%

EBIT Growth (5y)

-13.11%

EBIT to Interest (avg)

82.88

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

1.03

Tax Ratio

62.53%

Dividend Payout Ratio

145.28%

Pledged Shares

Institutional Holding

ROCE (avg)

11.41%

ROE (avg)

6.88%

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

0.90

EV to EBIT

15.76

EV to EBITDA

8.56

EV to Capital Employed

0.90

EV to Sales

0.69

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

5.68%

ROE (Latest)

2.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly 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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.05% (YoY

-33What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 928 MM has Fallen at -59.9%

ROCE(HY)

Lowest at 1.41%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.27%

INTEREST(Q)

At JPY 106 MM has Grown at 12.77%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,354.72

NET PROFIT(Q)

At JPY 701.68 MM has Fallen at -57.65%

CASH AND EQV(HY)

Lowest at JPY 47,968 MM

NET SALES(Q)

Lowest at JPY 34,869 MM

OPERATING PROFIT(Q)

Lowest at JPY 2,496 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.16 %

Here's what is working for Nichiha Corp.

Raw Material Cost

Fallen by -1.05% (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 Nichiha Corp.

Pre-Tax Profit

At JPY 928 MM has Fallen at -59.9%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest

At JPY 106 MM has Grown at 12.77%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,354.72

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At JPY 701.68 MM has Fallen at -57.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 3.27% and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at JPY 34,869 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 2,496 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 7.16 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at JPY 47,968 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents