Why is Nippo Ltd. ?
1
Poor Management Efficiency with a low ROE of 8.54%
- The company has been able to generate a Return on Equity (avg) of 8.54% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with a 2.66% CAGR growth in Net Sales over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 8.54% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 2.66% over the last 5 years
4
Negative results in Jun 26
- ROCE(HY) Lowest at 8.82%
- INTEREST COVERAGE RATIO(Q) Lowest at 4,385.71
- DEBT-EQUITY RATIO (HY) Highest at -5.55 %
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 Nippo Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Nippo Ltd.
39.58%
1.34
56.01%
Japan Nikkei 225
43.52%
1.48
29.43%
Quality key factors
Factor
Value
Sales Growth (5y)
2.66%
EBIT Growth (5y)
29.12%
EBIT to Interest (avg)
25.44
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.20
Sales to Capital Employed (avg)
2.28
Tax Ratio
28.29%
Dividend Payout Ratio
48.99%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
14.67%
ROE (avg)
8.54%
Valuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
2.05
EV to EBIT
15.26
EV to EBITDA
8.69
EV to Capital Employed
2.24
EV to Sales
0.70
PEG Ratio
0.55
Dividend Yield
NA
ROCE (Latest)
14.68%
ROE (Latest)
11.92%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bearish
Technical Movement
4What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 1.48% (YoY
CASH AND EQV(HY)
Highest at JPY 13,260 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 12.78 times
NET SALES(Q)
Highest at JPY 12,620 MM
-19What is not working for the Company
ROCE(HY)
Lowest at 8.82%
INTEREST COVERAGE RATIO(Q)
Lowest at 4,385.71
DEBT-EQUITY RATIO
(HY)
Highest at -5.55 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.4 times
INTEREST(Q)
Highest at JPY 21 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 7.3 %
NET PROFIT(Q)
Lowest at JPY 341 MM
Here's what is working for Nippo Ltd.
Net Sales
Highest at JPY 12,620 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Cash and Eqv
Highest at JPY 13,260 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 12.78 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 1.48% (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 Nippo Ltd.
Interest
At JPY 21 MM has Grown at 10.53%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 4,385.71
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 21 MM
in the last five periods and Increased by 10.53% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit Margin
Lowest at 7.3 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Net Profit
Lowest at JPY 341 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Debt-Equity Ratio
Highest at -5.55 %
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
Debtors Turnover Ratio
Lowest at 4.4 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Non Operating Income
Highest at JPY 0.17 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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