Nihon Parkerizing Co., Ltd. (4095) 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

Nihon Parkerizing Co., Ltd.

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Why is Nihon Parkerizing Co., Ltd. ?

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

Poor long term growth as Net Sales has grown by an annual rate of 6.48% and Operating profit at 11.22% over the last 5 years

Flat results in Mar 26

INTEREST(HY) At JPY 5 MM has Grown at 66.67%
ROCE(HY) Lowest at 6.52%
DEBT-EQUITY RATIO (HY) Highest at -35.72 %

With ROE of 7.52%, it has a very attractive valuation with a 1.03 Price to Book Value

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 36.85%, its profits have fallen by -5.4%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 36.85% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nihon Parkerizing Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

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

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

Is Nihon Parkerizing Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nihon Parkerizing Co., Ltd.

-100.0%

1.52

23.28%

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)

6.48%

EBIT Growth (5y)

11.22%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

0.68

Tax Ratio

27.99%

Dividend Payout Ratio

44.57%

Pledged Shares

Institutional Holding

ROCE (avg)

14.09%

ROE (avg)

7.56%

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

1.03

EV to EBIT

9.18

EV to EBITDA

6.25

EV to Capital Employed

1.04

EV to Sales

0.99

PEG Ratio

Dividend Yield

ROCE (Latest)

11.33%

ROE (Latest)

7.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.15% (YoY

NET SALES(Q)

Highest at JPY 37,139 MM

PRE-TAX PROFIT(Q)

Highest at JPY 9,074 MM

-8What is not working for the Company

INTEREST(HY)

At JPY 5 MM has Grown at 66.67%

ROCE(HY)

Lowest at 6.52%

DEBT-EQUITY RATIO (HY)

Highest at -35.72 %

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

Net Sales

Highest at JPY 37,139 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 9,074 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 9,074 MM has Grown at 69.14%

over average net sales of the previous four periods of JPY 5,364.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by -1.15% (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 1,958 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 Parkerizing Co., Ltd.

Interest

At JPY 5 MM has Grown at 66.67%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -35.72 % and Grown

In each half year 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

Non Operating Income

Highest at JPY 0.63 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income