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

Nippon Pillar Packing Co., Ltd.

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Sumitomo Riko Co. Ltd.

Nichirin Co., Ltd.

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Chiyoda Integre Co., Ltd.

Teikoku Sen-I Co., Ltd.

Fukoku Co., Ltd.

Kurita Water Industries Ltd.

FP Corp.

LEC, Inc. (Japan)

Why is Nichirin Co., Ltd. ?

Weak Long Term Fundamental Strength with a 14.09% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 7.62% and Operating profit at 14.09% over the last 5 years

Positive results in Jun 26

DIVIDEND PER SHARE(HY) Highest at JPY 5.49
NET SALES(Q) Highest at JPY 21,463 MM
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost

With ROE of 11.57%, it has a very attractive valuation with a 0.97 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 16.93%, its profits have risen by 2.2% ; the PEG ratio of the company is 3.8

Underperformed the market in the last 1 year

The stock has generated a return of 16.93% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 58.07%

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.

16.11%

0.62

17.58%

Japan Nikkei 225

57.85%

1.98

29.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.62%

EBIT Growth (5y)

14.09%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

1.28

Tax Ratio

29.21%

Dividend Payout Ratio

42.08%

Pledged Shares

Institutional Holding

ROCE (avg)

26.36%

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

0.97

EV to EBIT

4.01

EV to EBITDA

2.97

EV to Capital Employed

0.95

EV to Sales

0.49

PEG Ratio

3.76

Dividend Yield

ROCE (Latest)

23.63%

ROE (Latest)

11.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

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

13What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 5.49

NET SALES(Q)

Highest at JPY 21,463 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

DIVIDEND PAYOUT RATIO(Y)

Highest at 105.12%

CASH AND EQV(HY)

Highest at JPY 45,819 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 4.41 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.49 times

-6What is not working for the Company

INTEREST(9M)

At JPY 62 MM has Grown at 6.9%

ROCE(HY)

Lowest at 9.08%

RAW MATERIAL COST(Y)

Grown by 13.56% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 14.98 %

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

Net Sales

Highest at JPY 21,463 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Dividend per share

Highest at JPY 5.49 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

At JPY 21,463 MM has Grown at 12.72%

over average net sales of the previous four periods of JPY 19,041 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 45,819 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 4.41 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.49 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 105.12%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

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

Interest

At JPY 62 MM has Grown at 6.9%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 14.98 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 13.56% (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