ScoreWhy is Nikko Co., Ltd. (6306) ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 32.23
2
Poor long term growth as Net Sales has grown by an annual rate of 6.94% and Operating profit at 6.15% over the last 5 years
3
Negative results in Jun 25
- PRE-TAX PROFIT(Q) At JPY 68 MM has Fallen at -89.15%
- INTEREST(Q) At JPY 32 MM has Grown at 39.13%
- INTEREST COVERAGE RATIO(Q) Lowest at 768.75
4
With ROE of 5.67%, it has a very attractive valuation with a 0.80 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 5.61%, its profits have risen by 53% ; the PEG ratio of the company is 0.3
- At the current price, the company has a high dividend yield of 0.1
5
Underperformed the market in the last 1 year
- The stock has generated a return of 5.61% 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 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)
5.63%
0.10
17.27%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.94%
EBIT Growth (5y)
6.15%
EBIT to Interest (avg)
32.23
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.11
Sales to Capital Employed (avg)
1.04
Tax Ratio
37.13%
Dividend Payout Ratio
61.21%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.86%
ROE (avg)
4.93%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
0.80
EV to EBIT
8.66
EV to EBITDA
6.09
EV to Capital Employed
0.78
EV to Sales
0.49
PEG Ratio
0.27
Dividend Yield
0.07%
ROCE (Latest)
9.00%
ROE (Latest)
5.67%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -8.89% (YoY
-21What is not working for the Company
PRE-TAX PROFIT(Q)
At JPY 68 MM has Fallen at -89.15%
INTEREST(Q)
At JPY 32 MM has Grown at 39.13%
INTEREST COVERAGE RATIO(Q)
Lowest at 768.75
NET SALES(Q)
Lowest at JPY 8,294 MM
OPERATING PROFIT(Q)
Lowest at JPY 246 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 2.97 %
NET PROFIT(Q)
Lowest at JPY -61 MM
EPS(Q)
Lowest at JPY -1.58
Here's what is working for Nikko Co., Ltd. (6306)
Raw Material Cost
Fallen by -8.89% (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 Nikko Co., Ltd. (6306)
Pre-Tax Profit
At JPY 68 MM has Fallen at -89.15%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY -61 MM has Fallen at -118.1%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Net Sales
At JPY 8,294 MM has Fallen at -15.79%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (JPY MM)
Interest
At JPY 32 MM has Grown at 39.13%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 768.75
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales
Lowest at JPY 8,294 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Interest
Highest at JPY 32 MM
in the last five periods and Increased by 39.13% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit
Lowest at JPY 246 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 2.97 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 68 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY -61 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY -1.58
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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