ScoreWhy is Nikkato Corp. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Net Sales has grown by an annual rate of 4.82% and Operating profit at 23.71% over the last 5 years
3
With a growth in Net Profit of 310.88%, the company declared Very Positive results in Mar 26
- ROCE(HY) Highest at 5.69%
- RAW MATERIAL COST(Y) Fallen by -46.47% (YoY)
- CASH AND EQV(HY) Highest at JPY 7,591.55 MM
4
With ROE of 4.49%, it has a very attractive valuation with a 0.69 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 232.82%, its profits have fallen by -6.7%
- At the current price, the company has a high dividend yield of 0
5
Market Beating performance in long term as well as near term
- Along with generating 232.82% 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 ReportHow much should you hold?
- Overall Portfolio exposure to Nikkato Corp. should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nikkato Corp. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Nikkato Corp.
232.82%
3.16
66.08%
Japan Nikkei 225
88.41%
3.25
27.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.82%
EBIT Growth (5y)
23.71%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.22
Sales to Capital Employed (avg)
0.74
Tax Ratio
29.82%
Dividend Payout Ratio
49.81%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.85%
ROE (avg)
4.77%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
0.69
EV to EBIT
8.21
EV to EBITDA
4.51
EV to Capital Employed
0.61
EV to Sales
0.62
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
7.46%
ROE (Latest)
4.49%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend24What is working for the Company
ROCE(HY)
Highest at 5.69%
RAW MATERIAL COST(Y)
Fallen by -46.47% (YoY
CASH AND EQV(HY)
Highest at JPY 7,591.55 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -25.67 %
INVENTORY TURNOVER RATIO(HY)
Highest at 3 times
DEBTORS TURNOVER RATIO(HY)
Highest at 3.06 times
NET SALES(Q)
Highest at JPY 3,166.69 MM
OPERATING PROFIT(Q)
Highest at JPY 495.79 MM
PRE-TAX PROFIT(Q)
Highest at JPY 326.08 MM
NET PROFIT(Q)
Highest at JPY 232.73 MM
EPS(Q)
Highest at JPY 19.47
-9What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 56.51%
INTEREST(Q)
Highest at JPY 2.22 MM
Here's what is working for Nikkato Corp.
Pre-Tax Profit
At JPY 326.08 MM has Grown at 334.53%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 232.73 MM has Grown at 310.88%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Net Sales
Highest at JPY 3,166.69 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Sales
At JPY 3,166.69 MM has Grown at 18.38%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 495.79 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Pre-Tax Profit
Highest at JPY 326.08 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 232.73 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 19.47
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Cash and Eqv
Highest at JPY 7,591.55 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -25.67 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 3 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 3.06 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -46.47% (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
Depreciation
Highest at JPY 184.79 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Nikkato Corp.
Interest
At JPY 2.22 MM has Grown at 16.31%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 2.22 MM
in the last five periods and Increased by 16.31% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Dividend Payout Ratio
Lowest at 56.51%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
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