NIHON HOUSE HOLDINGS Co., Ltd. (1873) 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

Takamatsu Construction Group Co. Ltd.

NIHON HOUSE HOLDINGS Co., Ltd.

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Tama Home Co., Ltd.

First Juken Co., Ltd.

Asanuma Corp.

Sankyo Frontier Co., Ltd.

Nagawa Co., Ltd.

Why is NIHON HOUSE HOLDINGS Co., Ltd. ?

Weak Long Term Fundamental Strength with a -9.29% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of -4.74% and Operating profit at -9.29% over the last 5 years

With a growth in Net Profit of 61.51%, the company declared Very Positive results in Apr 26

INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
RAW MATERIAL COST(Y) Fallen by -27.35% (YoY)
OPERATING PROFIT(Q) Highest at JPY 2,141 MM

With ROCE of 3.37%, it has a very attractive valuation with a 0.64 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 -4.11%, its profits have risen by 361.5% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.11% 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 HOUSE HOLDINGS Co., Ltd. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

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

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

Is NIHON HOUSE HOLDINGS Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

NIHON HOUSE HOLDINGS Co., Ltd.

-100.0%

-0.41

16.67%

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)

-4.74%

EBIT Growth (5y)

-9.29%

EBIT to Interest (avg)

7.29

Debt to EBITDA (avg)

1.40

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

1.11

Tax Ratio

46.78%

Dividend Payout Ratio

38.76%

Pledged Shares

Institutional Holding

ROCE (avg)

6.16%

ROE (avg)

4.34%

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

0.56

EV to EBIT

19.03

EV to EBITDA

7.11

EV to Capital Employed

0.64

EV to Sales

0.56

PEG Ratio

0.08

Dividend Yield

ROCE (Latest)

3.37%

ROE (Latest)

1.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

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

23What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -27.35% (YoY

OPERATING PROFIT(Q)

Highest at JPY 2,141 MM

OPERATING PROFIT MARGIN(Q)

Highest at 25.61 %

PRE-TAX PROFIT(Q)

Highest at JPY 1,655 MM

NET PROFIT(Q)

Highest at JPY 1,074 MM

EPS(Q)

Highest at JPY 26.83

-6What is not working for the Company

NET SALES(Q)

Fallen at -9.93%

INTEREST(Q)

Highest at JPY 57 MM

Here's what is working for NIHON HOUSE HOLDINGS Co., Ltd.

Pre-Tax Profit

At JPY 1,655 MM has Grown at 873.53%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,074 MM has Grown at 172.6%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Profit

Highest at JPY 2,141 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 25.61 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 1,655 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,074 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 26.83

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -27.35% (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 HOUSE HOLDINGS Co., Ltd.

Net Sales

Fallen at -9.93%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 57 MM

in the last five periods and Increased by 9.62% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)