ScoreWhy is Nikki Co., Ltd. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 17.93
2
Poor long term growth as Net Sales has grown by an annual rate of 2.12% over the last 5 years
3
Flat results in Jun 25
- NET SALES(9M) At JPY 5,568.79 MM has Grown at -21.1%
- NET PROFIT(9M) At JPY 318.54 MM has Grown at -78.57%
- INTEREST(9M) At JPY 77.94 MM has Grown at 37.38%
4
With ROCE of 5.23%, it has a very attractive valuation with a 0.53 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 60.00%, its profits have fallen by -71.6%
- 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 60.00% 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 Nikki Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Auto Components & Equipments should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nikki Co., Ltd. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Nikki Co., Ltd.
-100.0%
1.96
27.02%
Japan Nikkei 225
38.59%
1.50
26.58%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.12%
EBIT Growth (5y)
6.73%
EBIT to Interest (avg)
17.93
Debt to EBITDA (avg)
1.21
Net Debt to Equity (avg)
0.30
Sales to Capital Employed (avg)
0.45
Tax Ratio
29.06%
Dividend Payout Ratio
32.42%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.97%
ROE (avg)
9.65%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
0.39
EV to EBIT
10.17
EV to EBITDA
4.98
EV to Capital Employed
0.53
EV to Sales
1.08
PEG Ratio
NA
Dividend Yield
0.02%
ROCE (Latest)
5.23%
ROE (Latest)
4.53%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -18.78% (YoY
PRE-TAX PROFIT(Q)
At JPY 353.14 MM has Grown at 67.2%
-29What is not working for the Company
NET SALES(9M)
At JPY 5,568.79 MM has Grown at -21.1%
NET PROFIT(9M)
At JPY 318.54 MM has Grown at -78.57%
INTEREST(9M)
At JPY 77.94 MM has Grown at 37.38%
ROCE(HY)
Lowest at 5.94%
DEBT-EQUITY RATIO
(HY)
Highest at 31.52 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.66%
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.61%
Here's what is working for Nikki Co., Ltd.
Pre-Tax Profit
At JPY 353.14 MM has Grown at 67.2%
over average net sales of the previous four periods of JPY 211.21 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Raw Material Cost
Fallen by -18.78% (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 Nikki Co., Ltd.
Net Profit
At JPY 342.48 MM has Grown at -69.27%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Net Sales
At JPY 4,050.04 MM has Grown at -15.03%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (JPY MM)
Interest
Highest at JPY 27.16 MM
in the last five periods and Increased by 7.33% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at 31.52 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 1.66%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 4.61%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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