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.

Nihon Denkei Co., Ltd.

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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%

With ROCE of 12.26%, it has a very attractive valuation with a 0.99 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 21.39%, its profits have risen by 24.4% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you buy?

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.

21.39%

1.05

21.14%

Japan Nikkei 225

81.96%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.13%

EBIT Growth (5y)

21.13%

EBIT to Interest (avg)

34.88

Debt to EBITDA (avg)

1.03

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

2.71

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

0.99

EV to EBIT

8.11

EV to EBITDA

7.29

EV to Capital Employed

0.99

EV to Sales

0.31

PEG Ratio

0.37

Dividend Yield

ROCE (Latest)

12.26%

ROE (Latest)

11.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

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

9What is working for the Company

ROCE(HY)

Highest at 11.64%

RAW MATERIAL COST(Y)

Fallen by -1.36% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 21.76 times

DIVIDEND PER SHARE(HY)

Highest at JPY 2.77

NET SALES(Q)

Highest at JPY 46,368.79 MM

NET PROFIT(Q)

Highest at JPY 1,590.54 MM

EPS(Q)

Highest at JPY 137.07

-13What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 39.09%

DEBT-EQUITY RATIO (HY)

Highest at 32.99 %

INTEREST(Q)

Highest at JPY 75.33 MM

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

Net Sales

Highest at JPY 46,368.79 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

Highest at JPY 1,590.54 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 137.07

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 21.76 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 2.77

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -1.36% (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

Depreciation

Highest at JPY 248.58 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 248.58 MM has Grown at 203.66%

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 Nihon Denkei Co., Ltd.

Interest

At JPY 75.33 MM has Grown at 90.65%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 75.33 MM

in the last five periods and Increased by 90.65% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 32.99 %

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

Dividend Payout Ratio

Lowest at 39.09%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)