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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nihon Seiko Co., Ltd.

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Why is Nihon Seiko Co., Ltd. ?

Low Debt Company with Strong Long Term Fundamental Strength

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 83.47
The company has been able to generate a Return on Capital Employed (avg) of 18.07% signifying high profitability per unit of total capital (equity and debt)

With a growth in Net Sales of 6.02%, the company declared Very Positive results in Dec 25

The company has declared positive results for the last 6 consecutive quarters
NET PROFIT(HY) At JPY 2,344.91 MM has Grown at 157.98%
ROCE(HY) Highest at 42.61%
DEBTORS TURNOVER RATIO(HY) Highest at 8.13 times

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 156.20%, 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 in long term as well as near term

Along with generating 156.20% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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.

156.2%

3.96

81.51%

Japan Nikkei 225

36.73%

1.30

28.24%

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)

1.46

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

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

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

24What is working for the Company

NET PROFIT(HY)

At JPY 2,344.91 MM has Grown at 157.98%

ROCE(HY)

Highest at 42.61%

DEBTORS TURNOVER RATIO(HY)

Highest at 8.13 times

CASH AND EQV(HY)

Highest at JPY 7,049.86 MM

DEBT-EQUITY RATIO (HY)

Lowest at -3.61 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.05 times

NET SALES(Q)

At JPY 10,651.38 MM has Grown at 21.18%

-9What is not working for the Company

INTEREST(HY)

At JPY 41.94 MM has Grown at 106.72%

OPERATING PROFIT MARGIN(Q)

Lowest at 15.32 %

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

Net Profit

At JPY 2,344.91 MM has Grown at 157.98%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debtors Turnover Ratio

Highest at 8.13 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

At JPY 10,651.38 MM has Grown at 21.18%

over average net sales of the previous four periods of JPY 8,789.88 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 7,049.86 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -3.61 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 4.05 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Interest

At JPY 41.94 MM has Grown at 106.72%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 15.32 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales