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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nihon Dengi Co., Ltd.

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Nihon Denkei Co., Ltd.

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Nagano Keiki 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 Dec 25

INTEREST(HY) At JPY 84.51 MM has Grown at 52.69%
CASH AND EQV(HY) Lowest at JPY 13,754.93 MM
DEBT-EQUITY RATIO (HY) Highest at 35.27 %

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 27.44%, 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.

27.44%

0.89

21.23%

Japan Nikkei 225

36.73%

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)

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)

2.68

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

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.42% (YoY

NET SALES(Q)

At JPY 34,460.42 MM has Grown at 21.37%

NET PROFIT(Q)

Highest at JPY 1,340.44 MM

EPS(Q)

Highest at JPY 118.03

-10What is not working for the Company

INTEREST(HY)

At JPY 84.51 MM has Grown at 52.69%

CASH AND EQV(HY)

Lowest at JPY 13,754.93 MM

DEBT-EQUITY RATIO (HY)

Highest at 35.27 %

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

Net Sales

At JPY 34,460.42 MM has Grown at 21.37%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

Highest at JPY 1,340.44 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 118.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -1.42% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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

Interest

At JPY 84.51 MM has Grown at 52.69%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 13,754.93 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 35.27 %

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