Nihon Seiko Co., Ltd. (5729) 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

Nihon Seiko Co., Ltd.

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DOWA HOLDINGS Co., Ltd.

OSAKA Titanium Technologies Co., Ltd.

Toho Titanium Co., Ltd.

Kurotani Corp.

Toho Zinc Co., Ltd.

Nippon Denkai Ltd.

Why is Nihon Seiko Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 83.47

Low Debt Company with Strong Long Term Fundamental Strength

With a growth in Net Profit of 55.11%, the company declared Very Positive results in Jun 25

The company has declared positive results for the last 6 consecutive quarters
ROCE(HY) Highest at 35.39%
NET SALES(Q) Highest at JPY 10,793.3 MM
INTEREST COVERAGE RATIO(Q) Highest at 16,712.25

With ROE of 20.50%, it has a very attractive valuation with a 1.11 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 180.12%, its profits have risen by 396% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 0

Market Beating Performance

The stock has generated a return of 180.12% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Nihon Seiko Co., Ltd. should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

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

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

Is Nihon Seiko Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nihon Seiko Co., Ltd.

180.12%

3.10

78.22%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.20%

EBIT Growth (5y)

51.32%

EBIT to Interest (avg)

83.66

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

1.40

Tax Ratio

30.43%

Dividend Payout Ratio

19.92%

Pledged Shares

Institutional Holding

ROCE (avg)

18.13%

ROE (avg)

11.46%

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

1.10

EV to EBIT

4.15

EV to EBITDA

3.49

EV to Capital Employed

1.09

EV to Sales

0.59

PEG Ratio

0.01

Dividend Yield

0.01%

ROCE (Latest)

26.30%

ROE (Latest)

20.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

48What is working for the Company

ROCE(HY)

Highest at 35.39%

NET SALES(Q)

Highest at JPY 10,793.3 MM

INTEREST COVERAGE RATIO(Q)

Highest at 16,712.25

OPERATING PROFIT(Q)

Highest at JPY 3,026.42 MM

OPERATING PROFIT MARGIN(Q)

Highest at 28.04 %

PRE-TAX PROFIT(Q)

Highest at JPY 2,834.44 MM

NET PROFIT(Q)

At JPY 1,963.71 MM has Grown at 221.03%

RAW MATERIAL COST(Y)

Fallen by -123.67% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.97%

DEBTORS TURNOVER RATIO(HY)

Highest at 6.08%

EPS(Q)

Highest at JPY 803.84

-15What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 20 %

CASH AND EQV(HY)

Lowest at JPY 4,105.56 MM

INTEREST(Q)

Highest at JPY 18.11 MM

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

Net Sales

At JPY 10,793.3 MM has Grown at 71.46%

over average net sales of the previous four periods of JPY 6,294.88 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 2,834.44 MM has Grown at 222.37%

over average net sales of the previous four periods of JPY 879.24 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Sales

Highest at JPY 10,793.3 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Interest Coverage Ratio

Highest at 16,712.25

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at JPY 3,026.42 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 28.04 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 2,834.44 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,963.71 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Profit

At JPY 1,963.71 MM has Grown at 221.03%

over average net sales of the previous four periods of JPY 611.69 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

EPS

Highest at JPY 803.84

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 3.97%

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 6.08%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -123.67% (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

Here's what is not working for Nihon Seiko Co., Ltd.

Interest

At JPY 18.11 MM has Grown at 41.79%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 20 % 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

Interest

Highest at JPY 18.11 MM

in the last five periods and Increased by 41.79% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 4,105.56 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents