Nihon M&A Center Holdings Inc. (2127) 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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Daiwa Securities Group, Inc.

Aozora Bank Ltd.

Nihon M&A Center Holdings Inc.

Financial Partners Group Co., Ltd.

Why is Nihon M&A Center Holdings Inc. ?

High Management Efficiency with a high ROE of 22.48%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Operating profit has grown by an annual rate 3.25% of over the last 5 years

Negative results in Mar 26

INTEREST(HY) At JPY 28.36 MM has Grown at 56.46%
RAW MATERIAL COST(Y) Grown by 9.3% (YoY)
OPERATING PROFIT MARGIN(Q) Lowest at 24.93 %

With ROE of 22.92%, it has a very attractive valuation with a 4.58 Price to Book Value

Over the past year, while the stock has generated a return of -13.06%, its profits have risen by 2% ; the PEG ratio of the company is 9.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.06% 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 M&A Center Holdings Inc. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

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

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

Is Nihon M&A Center Holdings Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nihon M&A Center Holdings Inc.

-13.06%

-0.52

30.30%

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)

6.60%

EBIT Growth (5y)

3.25%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

35.21%

Dividend Payout Ratio

83.96%

Pledged Shares

Institutional Holding

ROCE (avg)

287.45%

ROE (avg)

22.48%

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

4.58

EV to EBIT

11.09

EV to EBITDA

10.98

EV to Capital Employed

12.95

EV to Sales

4.21

PEG Ratio

9.39

Dividend Yield

ROCE (Latest)

116.77%

ROE (Latest)

22.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

2What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -72.62 %

DEBTORS TURNOVER RATIO(HY)

Highest at 29.25 times

-12What is not working for the Company

INTEREST(HY)

At JPY 28.36 MM has Grown at 56.46%

RAW MATERIAL COST(Y)

Grown by 9.3% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 24.93 %

PRE-TAX PROFIT(Q)

At JPY 3,444.77 MM has Fallen at -37.2%

NET PROFIT(Q)

At JPY 2,465.58 MM has Fallen at -30.39%

Here's what is working for Nihon M&A Center Holdings Inc.

Debt-Equity Ratio

Lowest at -72.62 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 29.25 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Nihon M&A Center Holdings Inc.

Interest

At JPY 28.36 MM has Grown at 56.46%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 24.93 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At JPY 3,444.77 MM has Fallen at -37.2%

over average net sales of the previous four periods of JPY 5,485.31 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 2,465.58 MM has Fallen at -30.39%

over average net sales of the previous four periods of JPY 3,541.74 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Raw Material Cost

Grown by 9.3% (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