Nihon Enterprise Co., Ltd. (4829) 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

Commerce One Holdings, Inc.

ibis, Inc.

Tokai Soft Co. Ltd.

System Location Co., Ltd.

Nihon Enterprise Co., Ltd.

Nomura System Corporation Co., Ltd.

GLAD CUBE, Inc.

SHIKIGAKU Co., Ltd.

Excite Holdings Co., Ltd.

coly, Inc.

Vector Holdings, Inc.

Why is Nihon Enterprise Co., Ltd. ?

Poor Management Efficiency with a low ROE of 2.94%

The company has been able to generate a Return on Equity (avg) of 2.94% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 89.87

Poor long term growth as Net Sales has grown by an annual rate of 4.47% and Operating profit at -21.87% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(9M) At JPY 24.67 MM has Grown at -39.5%
CASH AND EQV(HY) Lowest at JPY 7,605.2 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 100.49 times

With ROE of 1.39%, it has a very attractive valuation with a 0.93 Price to Book Value

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 -2.36%, its profits have fallen by -69.6%

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 36.73% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -2.36% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nihon Enterprise Co., Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is Nihon Enterprise Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nihon Enterprise Co., Ltd.

-100.0%

-0.22

31.33%

Japan Nikkei 225

38.94%

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)

4.47%

EBIT Growth (5y)

-21.87%

EBIT to Interest (avg)

90.24

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.75

Sales to Capital Employed (avg)

0.92

Tax Ratio

58.76%

Dividend Payout Ratio

532.95%

Pledged Shares

Institutional Holding

ROCE (avg)

30.18%

ROE (avg)

2.94%

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

0.93

EV to EBIT

8.34

EV to EBITDA

3.99

EV to Capital Employed

0.72

EV to Sales

0.19

PEG Ratio

Dividend Yield

ROCE (Latest)

8.62%

ROE (Latest)

1.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

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

NET PROFIT(Q)

At JPY 11.09 MM has Grown at 83.21%

-5What is not working for the Company

NET PROFIT(9M)

At JPY 24.67 MM has Grown at -39.5%

CASH AND EQV(HY)

Lowest at JPY 7,605.2 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 100.49 times

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

Net Profit

At JPY 11.09 MM has Grown at 83.21%

over average net sales of the previous four periods of JPY 6.05 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Depreciation

Highest at JPY 29.26 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

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

Cash and Eqv

Lowest at JPY 7,605.2 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 100.49 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio