Nichirin Co., Ltd. (5184) 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

Sumitomo Riko Co. Ltd.

TAKUMA CO., LTD.

Nippon Pillar Packing Co., Ltd.

Nichirin Co., Ltd.

Fukoku Co., Ltd.

FP Corp.

Chiyoda Integre Co., Ltd.

Fujikura Composite, Inc.

LEC, Inc. (Japan)

Kurita Water Industries Ltd.

Teikoku Sen-I Co., Ltd.

Why is Nichirin Co., Ltd. ?

High Management Efficiency with a high ROE of 12.88%

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

Poor long term growth as Net Sales has grown by an annual rate of 3.66% and Operating profit at 9.88% over the last 5 years

Flat results in Dec 25

ROCE(HY) Lowest at 9.42%
INTEREST COVERAGE RATIO(Q) Lowest at 9,906.67
RAW MATERIAL COST(Y) Grown by 9.35% (YoY)

With ROE of 12.63%, it has a very attractive valuation with a 0.93 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 11.43%, its profits have fallen by -14.7%

Underperformed the market in the last 1 year

The stock has generated a return of 11.43% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nichirin Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Nichirin Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nichirin Co., Ltd.

11.43%

0.43

18.76%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.66%

EBIT Growth (5y)

9.88%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

1.30

Tax Ratio

29.01%

Dividend Payout Ratio

38.11%

Pledged Shares

Institutional Holding

ROCE (avg)

25.69%

ROE (avg)

12.88%

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

0.93

EV to EBIT

3.30

EV to EBITDA

2.47

EV to Capital Employed

0.89

EV to Sales

0.42

PEG Ratio

Dividend Yield

ROCE (Latest)

26.95%

ROE (Latest)

12.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

DIVIDEND PAYOUT RATIO(Y)

Highest at 88.63%

CASH AND EQV(HY)

Highest at JPY 44,268 MM

NET SALES(Q)

Highest at JPY 19,146 MM

-8What is not working for the Company

ROCE(HY)

Lowest at 9.42%

INTEREST COVERAGE RATIO(Q)

Lowest at 9,906.67

RAW MATERIAL COST(Y)

Grown by 9.35% (YoY

INTEREST(Q)

Highest at JPY 30 MM

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

Net Sales

Highest at JPY 19,146 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 44,268 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 88.63%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at JPY 853 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 Nichirin Co., Ltd.

Interest

At JPY 30 MM has Grown at 200%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 9,906.67

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 30 MM

in the last five periods and Increased by 200% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 9.35% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales