Nihon Kogyo Co., Ltd. (5279) 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

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Why is Nihon Kogyo Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.50% over the last 5 years

Flat results in Mar 26

DEBT-EQUITY RATIO (HY) Highest at 34.45 %
INTEREST(Q) Highest at JPY 12.22 MM

With ROCE of 7.40%, it has a fair 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 -5.51%, its profits have risen by 42.4% ; the PEG ratio of the company is 0.2

Below par performance in long term as well as near term

Along with generating -5.51% 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 Kogyo 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 Kogyo Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nihon Kogyo Co., Ltd.

-5.51%

0.93

37.66%

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)

5.50%

EBIT Growth (5y)

11.32%

EBIT to Interest (avg)

25.51

Debt to EBITDA (avg)

2.36

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

1.27

Tax Ratio

36.88%

Dividend Payout Ratio

29.48%

Pledged Shares

Institutional Holding

ROCE (avg)

4.49%

ROE (avg)

4.05%

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

0.51

EV to EBIT

8.60

EV to EBITDA

5.09

EV to Capital Employed

0.64

EV to Sales

0.43

PEG Ratio

0.18

Dividend Yield

ROCE (Latest)

7.40%

ROE (Latest)

6.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

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

7What is working for the Company

ROCE(HY)

Highest at 6.99%

RAW MATERIAL COST(Y)

Fallen by -7.37% (YoY

NET PROFIT(9M)

Higher at JPY 549.88 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 5.9 times

DIVIDEND PER SHARE(HY)

Highest at JPY 3.15

NET SALES(Q)

Highest at JPY 4,957.96 MM

-12What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 34.45 %

INTEREST(Q)

Highest at JPY 12.22 MM

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

Net Sales

Highest at JPY 4,957.96 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 5.9 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 3.15

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Profit

Higher at JPY 549.88 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Raw Material Cost

Fallen by -7.37% (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 165.83 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 Kogyo Co., Ltd.

Interest

At JPY 12.22 MM has Grown at 28.38%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 12.22 MM

in the last five periods and Increased by 28.38% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 34.45 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio