Nichireki Co., Ltd. (5011) 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

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Nichireki Co., Ltd.

Daiho Corp.

Why is Nichireki Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

INTEREST(HY) At JPY 130 MM has Grown at 2,500%
DEBT-EQUITY RATIO (HY) Highest at -7.14 %

With ROE of 6.27%, it has a very attractive valuation with a 0.99 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 -8.20%, its profits have risen by 6.8% ; the PEG ratio of the company is 2.3
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 -8.20% 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 Nichireki Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Nichireki Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nichireki Co., Ltd.

-8.2%

-0.39

24.61%

Japan Nikkei 225

41.2%

1.45

28.34%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.57%

EBIT Growth (5y)

0.85%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.15

Sales to Capital Employed (avg)

0.94

Tax Ratio

31.50%

Dividend Payout Ratio

45.49%

Pledged Shares

Institutional Holding

ROCE (avg)

16.58%

ROE (avg)

7.98%

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

0.99

EV to EBIT

10.37

EV to EBITDA

7.35

EV to Capital Employed

0.99

EV to Sales

0.86

PEG Ratio

2.32

Dividend Yield

0.02%

ROCE (Latest)

9.57%

ROE (Latest)

6.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.58% (YoY

NET SALES(Q)

At JPY 22,635 MM has Grown at 19.22%

PRE-TAX PROFIT(Q)

At JPY 2,742 MM has Grown at 54.85%

-9What is not working for the Company

INTEREST(HY)

At JPY 130 MM has Grown at 2,500%

DEBT-EQUITY RATIO (HY)

Highest at -7.14 %

Here's what is working for Nichireki Co., Ltd.

Net Sales

At JPY 22,635 MM has Grown at 19.22%

over average net sales of the previous four periods of JPY 18,986 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 2,742 MM has Grown at 54.85%

over average net sales of the previous four periods of JPY 1,770.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by -1.58% (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

Depreciation

Highest at JPY 764 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Nichireki Co., Ltd.

Interest

At JPY 130 MM has Grown at 2,500%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -7.14 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio