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 Management Efficiency with a low ROCE of 4.49%

The company has been able to generate a Return on Capital Employed (avg) of 4.49% signifying low profitability per unit of total capital (equity and debt)

Weak Long Term Fundamental Strength with a 5.50% CAGR growth in Net Sales over the last 5 years

The company has been able to generate a Return on Equity (avg) of 4.05% signifying low profitability per unit of shareholders funds

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

Negative results in Jun 26

INTEREST COVERAGE RATIO(Q) Lowest at 1,455.26
RAW MATERIAL COST(Y) Grown by 5.03% (YoY)
INTEREST(Q) Highest at JPY 13.15 MM

Below par performance in long term as well as near term

Along with generating -8.85% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Nihon Kogyo Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nihon Kogyo Co., Ltd.

-8.85%

1.01

36.55%

Japan Nikkei 225

60.14%

2.05

29.37%

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)

22.51

Debt to EBITDA (avg)

2.28

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

1.28

Tax Ratio

28.84%

Dividend Payout Ratio

27.70%

Pledged Shares

Institutional Holding

ROCE (avg)

4.88%

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

0.45

EV to EBIT

7.90

EV to EBITDA

4.67

EV to Capital Employed

0.58

EV to Sales

0.40

PEG Ratio

0.16

Dividend Yield

ROCE (Latest)

7.40%

ROE (Latest)

6.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

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

6What is working for the Company

ROCE(HY)

Highest at 6.96%

CASH AND EQV(HY)

Highest at JPY 3,074.07 MM

DEBT-EQUITY RATIO (HY)

Lowest at 20.02 %

INVENTORY TURNOVER RATIO(HY)

Highest at 5.02 times

DEBTORS TURNOVER RATIO(HY)

Highest at 4.44 times

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,455.26

RAW MATERIAL COST(Y)

Grown by 5.03% (YoY

INTEREST(Q)

Highest at JPY 13.15 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 41.5 MM

NET PROFIT(Q)

Lowest at JPY 19.94 MM

EPS(Q)

Lowest at JPY 6.84

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

Cash and Eqv

Highest at JPY 3,074.07 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 20.02 %

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 5.02 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 4.44 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 168.91 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 Coverage Ratio

Lowest at 1,455.26

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 13.15 MM

in the last five periods and Increased by 7.65% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Lowest at JPY 41.5 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 19.94 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 6.84

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 5.03% (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

Non Operating Income

Highest at JPY 0.77 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income