ScoreWhy is Nikko Co., Ltd. (6306) ?
1
Poor Management Efficiency with a low ROE of 4.93%
- The company has been able to generate a Return on Equity (avg) of 4.93% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with a 3.88% CAGR growth in Operating Profits over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 4.93% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 6.05% and Operating profit at 3.88% over the last 5 years
4
Positive results in Mar 26
- ROCE(HY) Highest at 7.05%
- RAW MATERIAL COST(Y) Fallen by -16.98% (YoY)
- DIVIDEND PER SHARE(HY) Highest at JPY 3.77
5
With ROE of 5.10%, it has a very attractive valuation with a 0.96 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 27.16%, its profits have fallen by -5.2%
- At the current price, the company has a high dividend yield of 0
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Nikko Co., Ltd. (6306) should be less than 10%
- Overall Portfolio exposure to Automobiles should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nikko Co., Ltd. (6306) for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Nikko Co., Ltd. (6306)
27.16%
1.71
19.54%
Japan Nikkei 225
59.79%
2.03
29.50%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.05%
EBIT Growth (5y)
3.88%
EBIT to Interest (avg)
24.45
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.11
Sales to Capital Employed (avg)
1.07
Tax Ratio
22.50%
Dividend Payout Ratio
60.76%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.54%
ROE (avg)
4.93%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
0.96
EV to EBIT
14.14
EV to EBITDA
9.15
EV to Capital Employed
0.95
EV to Sales
0.69
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
6.75%
ROE (Latest)
5.10%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend19What is working for the Company
ROCE(HY)
Highest at 7.05%
RAW MATERIAL COST(Y)
Fallen by -16.98% (YoY
DIVIDEND PER SHARE(HY)
Highest at JPY 3.77
NET SALES(Q)
Highest at JPY 18,213 MM
OPERATING PROFIT(Q)
Highest at JPY 2,359 MM
OPERATING PROFIT MARGIN(Q)
Highest at 12.95 %
PRE-TAX PROFIT(Q)
Highest at JPY 1,989 MM
NET PROFIT(Q)
Highest at JPY 1,671.71 MM
EPS(Q)
Highest at JPY 40.2
-15What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at -9.22 %
DIVIDEND PAYOUT RATIO(Y)
Lowest at 57.22%
CASH AND EQV(HY)
Lowest at JPY 20,831 MM
INTEREST(Q)
Highest at JPY 40 MM
Here's what is working for Nikko Co., Ltd. (6306)
Net Sales
Highest at JPY 18,213 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 2,359 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 12.95 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 1,989 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Pre-Tax Profit
At JPY 1,989 MM has Grown at 68.56%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 1,671.71 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Net Profit
At JPY 1,671.71 MM has Grown at 107.29%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 40.2
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Dividend per share
Highest at JPY 3.77
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Raw Material Cost
Fallen by -16.98% (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 356 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 Nikko Co., Ltd. (6306)
Interest
At JPY 40 MM has Grown at 37.93%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at -9.22 % and Grown
In each half year 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
Interest
Highest at JPY 40 MM
in the last five periods and Increased by 37.93% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Cash and Eqv
Lowest at JPY 20,831 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Dividend Payout Ratio
Lowest at 57.22%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
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