Nintendo Co., Ltd. (7974) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nintendo Co., Ltd.

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Mars Group Holdings Corp.

Yamaha Corp.

Alpen Co., Ltd.

Snow Peak, Inc. (Japan)

Why is Nintendo Co., Ltd. ?

High Management Efficiency with a high ROE of 19.36%

Company has very low debt and has enough cash to service the debt requirements

With a growth in Net Sales of 95.09%, the company declared Outstanding results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
NET SALES(Q) At JPY 407,168 MM has Grown at 95.09%
DIVIDEND PAYOUT RATIO(Y) Highest at 314.5%
CASH AND EQV(HY) Highest at JPY 4,510,717 MM

With ROE of 13.46%, it has a attractive valuation with a 4.30 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 -50.90%, its profits have risen by 25.2% ; the PEG ratio of the company is 1.3
At the current price, the company has a high dividend yield of 0

Majority shareholders : FIIs

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Nintendo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Nintendo Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Nintendo Co., Ltd.

-50.9%

41.68

37.13%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.58%

EBIT Growth (5y)

-11.29%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.75

Sales to Capital Employed (avg)

0.59

Tax Ratio

25.11%

Dividend Payout Ratio

50.11%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

193.84%

ROE (avg)

19.36%

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

4.30

EV to EBIT

31.34

EV to EBITDA

29.85

EV to Capital Employed

15.42

EV to Sales

4.97

PEG Ratio

1.27

Dividend Yield

ROCE (Latest)

49.22%

ROE (Latest)

13.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

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

24What is working for the Company

NET SALES(Q)

At JPY 407,168 MM has Grown at 95.09%

DIVIDEND PAYOUT RATIO(Y)

Highest at 314.5%

CASH AND EQV(HY)

Highest at JPY 4,510,717 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 21.76 times

DIVIDEND PER SHARE(HY)

Highest at JPY 21.76

PRE-TAX PROFIT(Q)

At JPY 86,292 MM has Grown at 90.88%

NET PROFIT(Q)

At JPY 70,428.04 MM has Grown at 69.23%

-8What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 30.81% (YoY

INTEREST(Q)

Highest at JPY 61 MM

Here's what is working for Nintendo Co., Ltd.

Net Sales

At JPY 407,168 MM has Grown at 95.09%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (JPY MM)

Dividend Payout Ratio

Highest at 314.5% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Pre-Tax Profit

At JPY 86,292 MM has Grown at 90.88%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 70,428.04 MM has Grown at 69.23%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 4,510,717 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 21.76 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at JPY 21.76

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Here's what is not working for Nintendo Co., Ltd.

Interest

At JPY 61 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 61 MM

in the last five periods and Increased by inf% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 30.81% (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