Nihon Flush Co., Ltd. (7820) 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

Bunka Shutter Co. Ltd.

Sanwa Holdings Corp.

Nihon Flush Co., Ltd.

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Komatsu Wall Industry Co., Ltd.

TAKARA STANDARD CO., LTD.

INABA SEISAKUSHO Co., Ltd.

Maezawa Kasei Industries Co., Ltd.

Rinnai Corp.

Noda Corp.

Danto Holdings Corp.

Why is Nihon Flush Co., Ltd. ?

Weak Long Term Fundamental Strength with a -22.63% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate -22.63% of over the last 5 years

With a growth in Operating Profit of 402.71%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
PRE-TAX PROFIT(Q) At JPY 390.78 MM has Grown at 756.73%
NET PROFIT(Q) At JPY 237.21 MM has Grown at 1,636.01%
ROCE(HY) Highest at 4.57%

With ROE of 2.31%, it has a very attractive valuation with a 0.59 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 -10.99%, its profits have fallen by -2.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -10.99% 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 Flush Co., Ltd. should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

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

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

Is Nihon Flush Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nihon Flush Co., Ltd.

-11.57%

-1.25

16.39%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.15%

EBIT Growth (5y)

-22.63%

EBIT to Interest (avg)

55.17

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

0.74

Tax Ratio

31.63%

Dividend Payout Ratio

57.86%

Pledged Shares

Institutional Holding

ROCE (avg)

9.42%

ROE (avg)

7.71%

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

0.59

EV to EBIT

8.23

EV to EBITDA

5.12

EV to Capital Employed

0.45

EV to Sales

0.43

PEG Ratio

Dividend Yield

ROCE (Latest)

5.52%

ROE (Latest)

2.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

21What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 390.78 MM has Grown at 756.73%

NET PROFIT(Q)

At JPY 237.21 MM has Grown at 1,636.01%

ROCE(HY)

Highest at 4.57%

RAW MATERIAL COST(Y)

Fallen by -3.58% (YoY

CASH AND EQV(HY)

Highest at JPY 21,840.71 MM

DEBT-EQUITY RATIO (HY)

Lowest at -29.21 %

INVENTORY TURNOVER RATIO(HY)

Highest at 8.68 times

DEBTORS TURNOVER RATIO(HY)

Highest at 1.99 times

-8What is not working for the Company

INTEREST(HY)

At JPY 26.32 MM has Grown at 120.84%

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

Pre-Tax Profit

At JPY 390.78 MM has Grown at 756.73%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 237.21 MM has Grown at 1,636.01%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 21,840.71 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -29.21 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 8.68 times

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 1.99 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -3.58% (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 230.88 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 Flush Co., Ltd.

Interest

At JPY 26.32 MM has Grown at 120.84%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)