ScoreWhy is Nichiryoku Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 2.55%
- The company has been able to generate a Return on Capital Employed (avg) of 2.55% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of -6.71% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 2.61% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -6.71% over the last 5 years
4
The company declared negative results in Dec'25 after flat results in Sep'25
- INTEREST(9M) At JPY 36.21 MM has Grown at 5.99%
- DEBTORS TURNOVER RATIO(HY) Lowest at 11.06 times
- OPERATING PROFIT(Q) Lowest at JPY -121.71 MM
5
With ROCE of -5.50%, it has a fair valuation with a 0.48 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 -38.52%, its profits have risen by 574.9% ; the PEG ratio of the company is 0
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Nichiryoku Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Nichiryoku Co., Ltd.
-38.52%
-1.76
35.54%
Japan Nikkei 225
85.83%
3.09
27.80%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-6.71%
EBIT Growth (5y)
-277.56%
EBIT to Interest (avg)
2.16
Debt to EBITDA (avg)
8.61
Net Debt to Equity (avg)
0.46
Sales to Capital Employed (avg)
0.39
Tax Ratio
42.68%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.55%
ROE (avg)
2.61%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
4
Industry P/E
Price to Book Value
0.38
EV to EBIT
-8.70
EV to EBITDA
-10.10
EV to Capital Employed
0.48
EV to Sales
1.58
PEG Ratio
0.01
Dividend Yield
NA
ROCE (Latest)
-5.50%
ROE (Latest)
9.44%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
Bullish
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
NET PROFIT(HY)
Higher at JPY 497.33 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 30.04 %
-30What is not working for the Company
INTEREST(9M)
At JPY 36.21 MM has Grown at 5.99%
DEBTORS TURNOVER RATIO(HY)
Lowest at 11.06 times
OPERATING PROFIT(Q)
Lowest at JPY -121.71 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -30.67 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.02 times
NET SALES(Q)
Lowest at JPY 396.11 MM
PRE-TAX PROFIT(Q)
Lowest at JPY -358.39 MM
NET PROFIT(Q)
Lowest at JPY -337.77 MM
EPS(Q)
Lowest at JPY -19.43
Here's what is working for Nichiryoku Co., Ltd.
Debt-Equity Ratio
Lowest at 30.04 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Depreciation
At JPY 7.57 MM has Grown at inf%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (JPY MM)
Here's what is not working for Nichiryoku Co., Ltd.
Net Sales
At JPY 396.11 MM has Fallen at -28.27%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely negative
Net Sales (JPY MM)
Pre-Tax Profit
At JPY -358.39 MM has Fallen at -216.13%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY -337.77 MM has Fallen at -130.31%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Operating Profit
Lowest at JPY -121.71 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at -30.67 % and Fallen
In each period in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debtors Turnover Ratio
Lowest at 11.06 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Interest
At JPY 36.21 MM has Grown at 5.99%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Sales
Lowest at JPY 396.11 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Pre-Tax Profit
Lowest at JPY -358.39 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY -337.77 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY -19.43
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Inventory Turnover Ratio
Lowest at 2.02 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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