Nihon Denkei Co., Ltd. (9908) 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

Nihon Dengi Co., Ltd.

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Nihon Denkei Co., Ltd.

Espec Corp.

Aichi Tokei Denki Co., Ltd.

Kyosan Electric Manufacturing Co., Ltd.

Abalance Corp.

Why is Nihon Denkei Co., Ltd. ?

High Management Efficiency with a high ROCE of 11.60%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 34.88

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 11.60%

Flat results in Jun 25

INTEREST(HY) At JPY 91.25 MM has Grown at 99.14%
ROCE(HY) Lowest at 9.32%
INTEREST COVERAGE RATIO(Q) Lowest at 1,060.44

With ROCE of 13.67%, it has a very attractive valuation with a 0.86 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 25.28%, its profits have risen by 5.7% ; the PEG ratio of the company is 1.4
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nihon Denkei Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Nihon Denkei Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nihon Denkei Co., Ltd.

21.04%

0.38

19.20%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.36%

EBIT Growth (5y)

13.92%

EBIT to Interest (avg)

34.88

Debt to EBITDA (avg)

1.03

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

2.63

Tax Ratio

36.64%

Dividend Payout Ratio

33.35%

Pledged Shares

Institutional Holding

ROCE (avg)

11.60%

ROE (avg)

9.83%

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

0.83

EV to EBIT

6.27

EV to EBITDA

5.50

EV to Capital Employed

0.86

EV to Sales

0.24

PEG Ratio

1.42

Dividend Yield

0.02%

ROCE (Latest)

13.67%

ROE (Latest)

10.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

4What is working for the Company

NET SALES(HY)

At JPY 68,756.05 MM has Grown at 20.6%

INVENTORY TURNOVER RATIO(HY)

Highest at 17.45%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.35%

-22What is not working for the Company

INTEREST(HY)

At JPY 91.25 MM has Grown at 99.14%

ROCE(HY)

Lowest at 9.32%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,060.44

OPERATING PROFIT(Q)

Lowest at JPY 457.98 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.89 %

PRE-TAX PROFIT(Q)

Lowest at JPY 252.83 MM

NET PROFIT(Q)

Lowest at JPY 35.09 MM

EPS(Q)

Lowest at JPY 3.1

Here's what is working for Nihon Denkei Co., Ltd.

Net Sales

At JPY 68,756.05 MM has Grown at 20.6%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 17.45%

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 3.35%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Interest

At JPY 91.25 MM has Grown at 99.14%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 35.09 MM has Fallen at -90.78%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 1,060.44

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At JPY 252.83 MM has Fallen at -58.14%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Operating Profit

Lowest at JPY 457.98 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 1.89 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 252.83 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 35.09 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 3.1

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)