Why is Nippo Ltd. ?
1
Company has a low Debt to Equity ratio (avg) at times
2
Poor long term growth as Net Sales has grown by an annual rate of 0.63% over the last 5 years
- INTEREST(HY) At JPY 29 MM has Grown at 7.41%
- DEBT-EQUITY RATIO (HY) Highest at -11.35 %
3
With ROE of 11.28%, it has a very attractive valuation with a 1.33 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 31.12%, its profits have risen by 18.3% ; the PEG ratio of the company is 0.6
- At the current price, the company has a high dividend yield of 0
4
Consistent Returns over the last 3 years
- Along with generating 31.12% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to Nippo Ltd. should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nippo Ltd. for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Nippo Ltd.
31.12%
1.24
24.86%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
0.63%
EBIT Growth (5y)
7.04%
EBIT to Interest (avg)
20.21
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.20
Sales to Capital Employed (avg)
2.36
Tax Ratio
10.33%
Dividend Payout Ratio
49.01%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
13.45%
ROE (avg)
8.54%
Valuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
1.33
EV to EBIT
10.43
EV to EBITDA
5.61
EV to Capital Employed
1.41
EV to Sales
0.42
PEG Ratio
0.64
Dividend Yield
0.02%
ROCE (Latest)
13.50%
ROE (Latest)
11.28%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
4What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -8.25% (YoY
NET PROFIT(9M)
Higher at JPY 1,535 MM
CASH AND EQV(HY)
Highest at JPY 12,546 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 11.69%
-5What is not working for the Company
INTEREST(HY)
At JPY 29 MM has Grown at 7.41%
DEBT-EQUITY RATIO
(HY)
Highest at -11.35 %
Here's what is working for Nippo Ltd.
Cash and Eqv
Highest at JPY 12,546 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 11.69%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Profit
Higher at JPY 1,535 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (JPY MM)
Raw Material Cost
Fallen by -8.25% (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 29 MM has Grown at 7.41%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at -11.35 %
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






