ScoreWhy is Nikken Kogaku Co., Ltd. ?
1
High Management Efficiency with a high ROE of 13.47%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 87.41
3
Healthy long term growth as Operating profit has grown by an annual rate 37.34%
4
Flat results in Jun 25
- RAW MATERIAL COST(Y) Grown by 15.6% (YoY)
- INVENTORY TURNOVER RATIO(HY) Lowest at 22.04%
5
With ROE of 6.15%, it has a very attractive valuation with a 0.57 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 9.92%, its profits have risen by 3.8% ; the PEG ratio of the company is 2.4
- 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 9.92% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Nikken Kogaku Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Building Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Building Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nikken Kogaku Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Nikken Kogaku Co., Ltd.
8.25%
-0.41
20.20%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-7.36%
EBIT Growth (5y)
37.34%
EBIT to Interest (avg)
87.41
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.54
Sales to Capital Employed (avg)
1.25
Tax Ratio
29.66%
Dividend Payout Ratio
19.29%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
36.37%
ROE (avg)
13.47%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
0.57
EV to EBIT
0.46
EV to EBITDA
0.33
EV to Capital Employed
0.07
EV to Sales
0.03
PEG Ratio
2.42
Dividend Yield
0.04%
ROCE (Latest)
16.27%
ROE (Latest)
6.15%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
PRE-TAX PROFIT(Q)
At JPY 29.44 MM has Grown at 506.71%
DEBTORS TURNOVER RATIO(HY)
Highest at 4.01%
NET SALES(Q)
At JPY 1,324.79 MM has Grown at 25.1%
NET PROFIT(Q)
At JPY 2.56 MM has Grown at 119.96%
-3What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 15.6% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 22.04%
Here's what is working for Nikken Kogaku Co., Ltd.
Pre-Tax Profit
At JPY 29.44 MM has Grown at 506.71%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Sales
At JPY 1,324.79 MM has Grown at 25.1%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Profit
At JPY 2.56 MM has Grown at 119.96%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Debtors Turnover Ratio
Highest at 4.01%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Nikken Kogaku Co., Ltd.
Inventory Turnover Ratio
Lowest at 22.04%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 15.6% (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
Non Operating Income
Highest at JPY 0.78 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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