Why is Nihon Kogyo Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 3.20% over the last 5 years
2
Flat results in Jun 25
- INTEREST(9M) At JPY 24.22 MM has Grown at 94.99%
3
With ROCE of 6.04%, it has a very attractive valuation with a 0.51 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 75.92%, its profits have risen by 28% ; the PEG ratio of the company is 0.3
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?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Nihon Kogyo Co., Ltd.
-100.0%
1.60
41.08%
Japan Nikkei 225
38.59%
1.45
26.59%
Quality key factors
Factor
Value
Sales Growth (5y)
3.20%
EBIT Growth (5y)
2.43%
EBIT to Interest (avg)
25.51
Debt to EBITDA (avg)
2.36
Net Debt to Equity (avg)
0.24
Sales to Capital Employed (avg)
1.25
Tax Ratio
36.88%
Dividend Payout Ratio
29.48%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.49%
ROE (avg)
4.05%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
0.39
EV to EBIT
8.42
EV to EBITDA
4.49
EV to Capital Employed
0.51
EV to Sales
0.34
PEG Ratio
0.28
Dividend Yield
NA
ROCE (Latest)
6.04%
ROE (Latest)
4.97%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
13What is working for the Company
ROCE(HY)
Highest at 6.12%
DEBTORS TURNOVER RATIO(HY)
Highest at 4.01%
PRE-TAX PROFIT(Q)
At JPY 52.22 MM has Grown at 238.71%
NET PROFIT(Q)
At JPY 28.02 MM has Grown at 158.21%
RAW MATERIAL COST(Y)
Fallen by -25.04% (YoY
-9What is not working for the Company
INTEREST(9M)
At JPY 24.22 MM has Grown at 94.99%
Here's what is working for Nihon Kogyo Co., Ltd.
Pre-Tax Profit
At JPY 52.22 MM has Grown at 238.71%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 28.02 MM has Grown at 158.21%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Debtors Turnover Ratio
Highest at 4.01% and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -25.04% (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 135.23 MM
in the last five periodsMOJO 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
Highest at JPY 8.73 MM
in the last five periods and Increased by 6.86% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






