Nikon Corp. (7731) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kyocera Corp.

Ferrotec Holdings Corp.

Restar Corp.

Micronics Japan Co., Ltd.

ROHM Co., Ltd.

Rorze Corp.

Renesas Electronics Corp.

Sanken Electric Co., Ltd.

Nikon Corp.

Socionext, Inc.

JSR Corp.

Why is Nikon Corp. ?

Poor Management Efficiency with a low ROE of 3.95%

The company has been able to generate a Return on Equity (avg) of 3.95% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.89% and Operating profit at -10.11% over the last 5 years

With a fall in Operating Profit of -39.07%, the company declared Very Negative results in Jun 25

The company has declared negative results for the last 4 consecutive quarters
NET PROFIT(9M) At JPY 12,628 MM has Grown at -50.52%
PRE-TAX PROFIT(Q) At JPY -7 MM has Fallen at -102.02%
ROCE(HY) Lowest at 1.91%

Underperformed the market in the last 1 year

The stock has generated a return of 11.56% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Nikon Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Nikon Corp.

11.56%

353.87

40.20%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.89%

EBIT Growth (5y)

-10.11%

EBIT to Interest (avg)

2.87

Debt to EBITDA (avg)

0.12

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

0.85

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

279.93%

Pledged Shares

Institutional Holding

0.14%

ROCE (avg)

6.47%

ROE (avg)

3.95%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.80

EV to EBIT

31.96

EV to EBITDA

8.81

EV to Capital Employed

0.80

EV to Sales

0.75

PEG Ratio

Dividend Yield

0.03%

ROCE (Latest)

2.52%

ROE (Latest)

0.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

NET PROFIT(Q)

At JPY 9,468 MM has Grown at 518.52%

EPS(Q)

Highest at JPY 28.64

-17What is not working for the Company

NET PROFIT(9M)

At JPY 12,628 MM has Grown at -50.52%

PRE-TAX PROFIT(Q)

At JPY -7 MM has Fallen at -102.02%

ROCE(HY)

Lowest at 1.91%

DEBT-EQUITY RATIO (HY)

Highest at 7.77 %

NET SALES(Q)

At JPY 158,121 MM has Fallen at -11.58%

RAW MATERIAL COST(Y)

Grown by 7.07% (YoY

CASH AND EQV(HY)

Lowest at JPY 328,330 MM

OPERATING PROFIT(Q)

Lowest at JPY 9,292 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.88 %

Here's what is working for Nikon Corp.

Net Profit

At JPY 9,468 MM has Grown at 518.52%

over average net sales of the previous four periods of JPY 1,530.75 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Profit

Highest at JPY 9,468 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 28.64

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Here's what is not working for Nikon Corp.

Pre-Tax Profit

At JPY -7 MM has Fallen at -102.02%

over average net sales of the previous four periods of JPY 346.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Sales

At JPY 158,121 MM has Fallen at -11.58%

over average net sales of the previous four periods of JPY 178,821.25 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Debt-Equity Ratio

Highest at 7.77 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales

Lowest at JPY 158,121 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 9,292 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 5.88 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at JPY 328,330 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 7.07% (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