Nihon Seimitsu Co., Ltd. (7771) 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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Nihon Seimitsu Co., Ltd.

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Why is Nihon Seimitsu Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.31%

The company has been able to generate a Return on Capital Employed (avg) of 4.31% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 8.88% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Capital Employed (avg) of 4.31% signifying low profitability per unit of total capital (equity and debt)

Healthy long term growth as Operating profit has grown by an annual rate 21.81%

The company has declared Positive results for the last 3 consecutive quarters

DEBT-EQUITY RATIO (HY) Lowest at 86.21 %
PRE-TAX PROFIT(Q) At JPY 125.34 MM has Grown at 162.26%
INVENTORY TURNOVER RATIO(HY) Highest at 4.13 times

With ROCE of 9.69%, it has a very expensive valuation with a 3.51 Enterprise value to Capital Employed

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 277.38%, its profits have fallen by -78.5%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nihon Seimitsu Co., Ltd. should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)

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

Is Nihon Seimitsu Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nihon Seimitsu Co., Ltd.

277.38%

2.44

130.14%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.88%

EBIT Growth (5y)

21.81%

EBIT to Interest (avg)

0.78

Debt to EBITDA (avg)

6.82

Net Debt to Equity (avg)

1.41

Sales to Capital Employed (avg)

1.56

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.31%

ROE (avg)

9.42%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

111

Industry P/E

Price to Book Value

6.21

EV to EBIT

36.22

EV to EBITDA

23.26

EV to Capital Employed

3.51

EV to Sales

1.74

PEG Ratio

Dividend Yield

ROCE (Latest)

9.69%

ROE (Latest)

5.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

Bearish

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly 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

20What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 86.21 %

PRE-TAX PROFIT(Q)

At JPY 125.34 MM has Grown at 162.26%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.13 times

NET SALES(Q)

Highest at JPY 2,194.38 MM

NET PROFIT(Q)

At JPY 49.91 MM has Grown at 98.75%

-5What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 8.31% (YoY

INTEREST(Q)

Highest at JPY 18.89 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.46 %

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

Pre-Tax Profit

At JPY 125.34 MM has Grown at 162.26%

over average net sales of the previous four periods of JPY 47.79 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Debt-Equity Ratio

Lowest at 86.21 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Net Sales

Highest at JPY 2,194.38 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 2,194.38 MM has Grown at 17.12%

over average net sales of the previous four periods of JPY 1,873.61 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

At JPY 49.91 MM has Grown at 98.75%

over average net sales of the previous four periods of JPY 25.11 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 4.13 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 Seimitsu Co., Ltd.

Interest

At JPY 18.89 MM has Grown at 20.88%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 18.89 MM

in the last five periods and Increased by 20.88% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 5.46 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 8.31% (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