NIHON SEIKAN KK (5905) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sun A. Kaken Co., Ltd.

Chugokukogyo Co., Ltd.

Superbag Co., Ltd.

Toin Corp.

SHOEI CORP. (9385)

Maruto Sangyo Co., Ltd.

MICS Chemical Co., Ltd.

NIHON SEIKAN KK

Nozaki Insatsu Shigyo Co., Ltd.

Furubayashi Shiko Co., Ltd.

Chuoh Pack Industry Co., Ltd.

Why is NIHON SEIKAN KK ?

Poor Management Efficiency with a low ROCE of 2.23%

The company has been able to generate a Return on Capital Employed (avg) of 2.23% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 2.11% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 2.23% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 2.11% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(HY) At JPY 13.55 MM has Grown at 50.05%
NET SALES(HY) At JPY 5,339.74 MM has Grown at -16.49%
PRE-TAX PROFIT(Q) At JPY -58.84 MM has Fallen at -153.04%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -5.97%, its profits have risen by 15.4% ; the PEG ratio of the company is 0.4

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 Packaging)

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

Is NIHON SEIKAN KK for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

NIHON SEIKAN KK

-8.54%

-1.04

24.23%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.11%

EBIT Growth (5y)

-267.40%

EBIT to Interest (avg)

5.84

Debt to EBITDA (avg)

3.29

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

1.47

Tax Ratio

25.07%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.23%

ROE (avg)

6.78%

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

0.48

EV to EBIT

-5.91

EV to EBITDA

-24.17

EV to Capital Employed

0.60

EV to Sales

0.28

PEG Ratio

0.36

Dividend Yield

ROCE (Latest)

-10.19%

ROE (Latest)

8.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

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

11What is working for the Company

NET PROFIT(HY)

Higher at JPY 520.36 MM

CASH AND EQV(HY)

Highest at JPY 3,045.57 MM

DEBT-EQUITY RATIO (HY)

Lowest at 38 %

-22What is not working for the Company

INTEREST(HY)

At JPY 13.55 MM has Grown at 50.05%

NET SALES(HY)

At JPY 5,339.74 MM has Grown at -16.49%

PRE-TAX PROFIT(Q)

At JPY -58.84 MM has Fallen at -153.04%

NET PROFIT(Q)

At JPY -53.84 MM has Fallen at -164.19%

RAW MATERIAL COST(Y)

Grown by 27.57% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.28%

Here's what is working for NIHON SEIKAN KK

Cash and Eqv

Highest at JPY 3,045.57 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 38 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for NIHON SEIKAN KK

Interest

At JPY 13.55 MM has Grown at 50.05%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY -58.84 MM has Fallen at -153.04%

over average net sales of the previous four periods of JPY 110.94 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -53.84 MM has Fallen at -164.19%

over average net sales of the previous four periods of JPY 83.87 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

At JPY 5,339.74 MM has Grown at -16.49%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Debtors Turnover Ratio

Lowest at 2.28%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 27.57% (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