Nichiryoku Co., Ltd. (7578) 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

Meiho Facility Works Ltd.

Tanaken KK

Nankai Tatsumura Construction Co., Ltd.

Semba Corp.

Wesco Holdings Inc. (Japan)

Nichiryoku Co., Ltd.

Kawagishi Bridge Works Co., Ltd.

Sumiken Mitsui Road Co., Ltd.

Besterra Co., Ltd

CEL Corp.

KFC Ltd.

Why is Nichiryoku Co., Ltd. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -6.68% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(HY) At JPY 36.15 MM has Grown at 24.32%
ROCE(HY) Lowest at -7.16%
DEBTORS TURNOVER RATIO(HY) Lowest at 12.27%

With ROCE of -1.46%, it has a risky valuation with a 0.61 Enterprise value to Capital Employed

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 -38.42%, its profits have fallen by -164.7%

Below par performance in long term as well as near term

Along with generating -38.42% 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 Nichiryoku 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 Nichiryoku Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nichiryoku Co., Ltd.

-38.42%

-1.23

33.85%

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)

-6.68%

EBIT Growth (5y)

-189.42%

EBIT to Interest (avg)

2.16

Debt to EBITDA (avg)

8.61

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

0.38

Tax Ratio

42.68%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.55%

ROE (avg)

2.61%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.43

EV to EBIT

-41.64

EV to EBITDA

-93.21

EV to Capital Employed

0.61

EV to Sales

1.82

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.46%

ROE (Latest)

-5.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-40What is not working for the Company

INTEREST(HY)

At JPY 36.15 MM has Grown at 24.32%

ROCE(HY)

Lowest at -7.16%

DEBTORS TURNOVER RATIO(HY)

Lowest at 12.27%

CASH AND EQV(HY)

Lowest at JPY 186.28 MM

DEBT-EQUITY RATIO (HY)

Highest at 46.3 %

NET SALES(Q)

Lowest at JPY 483.62 MM

OPERATING PROFIT(Q)

Lowest at JPY -82.51 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -17.06 %

PRE-TAX PROFIT(Q)

Lowest at JPY -112.11 MM

NET PROFIT(Q)

Lowest at JPY -114.44 MM

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

Interest

At JPY 36.15 MM has Grown at 24.32%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY -112.11 MM has Fallen at -121.99%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -114.44 MM has Fallen at -140.2%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

At JPY 483.62 MM has Fallen at -12.82%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Debtors Turnover Ratio

Lowest at 12.27% and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at JPY 483.62 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY -82.51 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -17.06 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -112.11 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -114.44 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Cash and Eqv

Lowest at JPY 186.28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 46.3 %

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