ScoreComparison
Why is Nihon Shokuhin Kako Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 6.64%
- The company has been able to generate a Return on Capital Employed (avg) of 6.64% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 8.16% signifying low profitability per unit of shareholders funds
3
High Debt company with Weak Long Term Fundamental Strength
4
Flat results in Jun 26
- INVENTORY TURNOVER RATIO(HY) Lowest at 4.25 times
- INTEREST(Q) Highest at JPY 31 MM
5
With ROCE of 2.70%, it has a very attractive valuation with a 0.74 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 20.36%, its profits have fallen by -11.6% ; the PEG ratio of the company is 1.2
- At the current price, the company has a high dividend yield of 0
6
Underperformed the market in the last 1 year
- The stock has generated a return of 20.36% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Nihon Shokuhin Kako Co., Ltd. should be less than 10%
- Overall Portfolio exposure to FMCG should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nihon Shokuhin Kako Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Nihon Shokuhin Kako Co., Ltd.
20.36%
1.92
23.98%
Japan Nikkei 225
59.79%
2.03
29.50%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.66%
EBIT Growth (5y)
-8.52%
EBIT to Interest (avg)
92.98
Debt to EBITDA (avg)
1.95
Net Debt to Equity (avg)
0.37
Sales to Capital Employed (avg)
1.72
Tax Ratio
25.21%
Dividend Payout Ratio
60.83%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.06%
ROE (avg)
8.16%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
0.66
EV to EBIT
27.42
EV to EBITDA
6.83
EV to Capital Employed
0.74
EV to Sales
0.45
PEG Ratio
1.16
Dividend Yield
NA
ROCE (Latest)
2.70%
ROE (Latest)
3.96%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -10.16% (YoY
NET SALES(Q)
Highest at JPY 17,581 MM
OPERATING PROFIT(Q)
Highest at JPY 1,730 MM
OPERATING PROFIT MARGIN(Q)
Highest at 9.84 %
PRE-TAX PROFIT(Q)
Highest at JPY 1,065 MM
NET PROFIT(Q)
Highest at JPY 729 MM
EPS(Q)
Highest at JPY 151.65
-12What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 4.25 times
INTEREST(Q)
Highest at JPY 31 MM
Here's what is working for Nihon Shokuhin Kako Co., Ltd.
Pre-Tax Profit
At JPY 1,065 MM has Grown at 172.55%
over average net sales of the previous four periods of JPY 390.75 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 729 MM has Grown at 149.66%
over average net sales of the previous four periods of JPY 292 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Net Sales
Highest at JPY 17,581 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Sales
At JPY 17,581 MM has Grown at 11.64%
over average net sales of the previous four periods of JPY 15,748.25 MMMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 1,730 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 9.84 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 1,065 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 729 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 151.65
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Raw Material Cost
Fallen by -10.16% (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 Shokuhin Kako Co., Ltd.
Interest
At JPY 31 MM has Grown at 24%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 31 MM
in the last five periods and Increased by 24% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Inventory Turnover Ratio
Lowest at 4.25 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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