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

NISSHIN GROUP HOLDINGS Co., Ltd.

Tokyu Construction Co., Ltd.

Asanuma Corp.

Token Corp.

Tama Home Co., Ltd.

Grandy House Corp.

Sankyo Frontier Co., Ltd.

Nagawa Co., Ltd.

NIHON HOUSE HOLDINGS Co., Ltd.

First Juken Co., Ltd.

Takamatsu Construction Group 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

Flat results in Jan 26

NET PROFIT(9M) At JPY 267 MM has Grown at -77.12%
NET SALES(HY) At JPY 15,145 MM has Grown at -10.37%
PRE-TAX PROFIT(Q) At JPY 26 MM has Fallen at -58.06%

With ROCE of 3.37%, it has a very attractive valuation with a 0.67 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 -10.61%, 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

Below par performance in long term as well as near term

Along with generating -10.61% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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.

-8.26%

-0.51

18.27%

Japan Nikkei 225

72.95%

2.52

26.65%

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)

9.32

Debt to EBITDA (avg)

1.92

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

1.11

Tax Ratio

33.83%

Dividend Payout Ratio

38.76%

Pledged Shares

Institutional Holding

ROCE (avg)

7.22%

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

0.59

EV to EBIT

19.78

EV to EBITDA

7.39

EV to Capital Employed

0.67

EV to Sales

0.59

PEG Ratio

0.08

Dividend Yield

ROCE (Latest)

3.37%

ROE (Latest)

1.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

8What is working for the Company

NET PROFIT(Q)

At JPY 19 MM has Grown at 280%

RAW MATERIAL COST(Y)

Fallen by 0.16% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 33.75 times

-13What is not working for the Company

NET PROFIT(9M)

At JPY 267 MM has Grown at -77.12%

NET SALES(HY)

At JPY 15,145 MM has Grown at -10.37%

PRE-TAX PROFIT(Q)

At JPY 26 MM has Fallen at -58.06%

CASH AND EQV(HY)

Lowest at JPY 10,132 MM

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

Net Profit

At JPY 19 MM has Grown at 280%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debtors Turnover Ratio

Highest at 33.75 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 0.16% (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.

Pre-Tax Profit

At JPY 26 MM has Fallen at -58.06%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Sales

At JPY 15,145 MM has Grown at -10.37%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Cash and Eqv

Lowest at JPY 10,132 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents