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.

GLAD CUBE, Inc.

Tokai Soft Co. Ltd.

Nomura System Corporation Co., Ltd.

Nihon Enterprise Co., Ltd.

Excite Holdings Co., Ltd.

System Location Co., Ltd.

SHIKIGAKU Co., Ltd.

coly, Inc.

Vector Holdings, Inc.

Why is Nihon Enterprise Co., Ltd. ?

Poor Management Efficiency with a low ROE of 2.80%

The company has been able to generate a Return on Equity (avg) of 2.80% 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 90.24

Poor long term growth as Net Sales has grown by an annual rate of 3.81% and Operating profit at -20.08% over the last 5 years

Flat results in Feb 26

NET PROFIT(Q) At JPY 4.25 MM has Fallen at -48.87%
RAW MATERIAL COST(Y) Grown by 17.74% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 74.71 times

With ROE of 1.06%, it has a very attractive valuation with a 1.04 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 -14.29%, its profits have fallen by -59.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -14.29% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

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%

-0.92

25.38%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.81%

EBIT Growth (5y)

-20.08%

EBIT to Interest (avg)

90.24

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.81

Sales to Capital Employed (avg)

0.93

Tax Ratio

58.76%

Dividend Payout Ratio

532.95%

Pledged Shares

Institutional Holding

ROCE (avg)

30.18%

ROE (avg)

2.80%

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

1.04

EV to EBIT

15.65

EV to EBITDA

5.93

EV to Capital Employed

1.21

EV to Sales

0.24

PEG Ratio

Dividend Yield

ROCE (Latest)

7.73%

ROE (Latest)

1.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

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(9M)

At JPY 7.51 MM has Grown at 2,507.99%

-7What is not working for the Company

NET PROFIT(Q)

At JPY 4.25 MM has Fallen at -48.87%

RAW MATERIAL COST(Y)

Grown by 17.74% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 74.71 times

PRE-TAX PROFIT(Q)

At JPY 17.68 MM has Fallen at -26.83%

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

Depreciation

Highest at JPY 29.79 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.

Net Profit

At JPY 4.25 MM has Fallen at -48.87%

over average net sales of the previous four periods of JPY 8.3 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 17.68 MM has Fallen at -26.83%

over average net sales of the previous four periods of JPY 24.17 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 74.71 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 17.74% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales