Nihon Shokuhin Kako Co., Ltd. (2892) 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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Why is Nihon Shokuhin Kako Co., Ltd. ?

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)

With a fall in Net Sales of -12.59%, the company declared Very Negative results in Dec 25

The company has declared negative results for the last 6 consecutive quarters
INTEREST(HY) At JPY 47 MM has Grown at 113.64%
ROCE(HY) Lowest at 4.02%
INTEREST COVERAGE RATIO(Q) Lowest at 2,131.82

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 FMCG)

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

Is Nihon Shokuhin Kako Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nihon Shokuhin Kako Co., Ltd.

37.77%

0.86

30.59%

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)

6.73%

EBIT Growth (5y)

151.23%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

1.85

Net Debt to Equity (avg)

0.37

Sales to Capital Employed (avg)

1.75

Tax Ratio

20.76%

Dividend Payout Ratio

30.60%

Pledged Shares

Institutional Holding

ROCE (avg)

6.64%

ROE (avg)

8.16%

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

0.76

EV to EBIT

26.64

EV to EBITDA

7.94

EV to Capital Employed

0.82

EV to Sales

0.51

PEG Ratio

Dividend Yield

0.01%

ROCE (Latest)

3.09%

ROE (Latest)

5.37%

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 Bearish

OBV

No Trend

Mildly Bearish

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

2What is working for the Company

CASH AND EQV(HY)

Highest at JPY 523 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4 times

-29What is not working for the Company

INTEREST(HY)

At JPY 47 MM has Grown at 113.64%

ROCE(HY)

Lowest at 4.02%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,131.82

NET SALES(Q)

Lowest at JPY 14,437 MM

OPERATING PROFIT(Q)

Lowest at JPY 469 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.25 %

PRE-TAX PROFIT(Q)

Lowest at JPY -297 MM

NET PROFIT(Q)

Lowest at JPY -236 MM

EPS(Q)

Lowest at JPY -48.3

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

Cash and Eqv

Highest at JPY 523 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 4 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Interest

At JPY 47 MM has Grown at 113.64%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY -297 MM has Fallen at -164.88%

over average net sales of the previous four periods of JPY 457.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -236 MM has Fallen at -164.52%

over average net sales of the previous four periods of JPY 365.75 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

At JPY 14,437 MM has Fallen at -8.69%

over average net sales of the previous four periods of JPY 15,811.75 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest Coverage Ratio

Lowest at 2,131.82

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 14,437 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 469 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 3.25 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -297 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -236 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -48.3

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)