Nippon Air Conditioning Services Co. Ltd. (4658) 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

DAI-DAN Co., Ltd.

Luckland Co., Ltd.

Techno Ryowa Ltd.

Nippon Air Conditioning Services Co. Ltd.

ASAHI KOGYOSHA CO., LTD.

DKK Co., Ltd.

Fudo Tetra Corp.

NIPPON RIETEC CO., LTD.

Hokuriku Electrical Construction Co., Ltd.

Meiko Construction Co., Ltd.

Tekken Corp.

Why is Nippon Air Conditioning Services Co. Ltd. ?

High Management Efficiency with a high ROE of 11.29%

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

Poor long term growth as Operating profit has grown by an annual rate 6.17% of over the last 5 years

Negative results in Jun 25

INTEREST(HY) At JPY 20 MM has Grown at 400%
INTEREST COVERAGE RATIO(Q) Lowest at 12,287.5

With ROE of 11.99%, it has a very attractive valuation with a 1.48 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 13.84%, its profits have risen by 14.1% ; the PEG ratio of the company is 0.9

Underperformed the market in the last 1 year

The stock has generated a return of 13.84% 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 hold?

Overall Portfolio exposure to Nippon Air Conditioning Services Co. Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Nippon Air Conditioning Services Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nippon Air Conditioning Services Co. Ltd.

13.84%

0.57

24.81%

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)

5.34%

EBIT Growth (5y)

6.17%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

2.27

Tax Ratio

28.66%

Dividend Payout Ratio

50.02%

Pledged Shares

Institutional Holding

ROCE (avg)

19.34%

ROE (avg)

11.29%

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

1.48

EV to EBIT

7.86

EV to EBITDA

7.06

EV to Capital Employed

1.60

EV to Sales

0.51

PEG Ratio

0.88

Dividend Yield

ROCE (Latest)

20.41%

ROE (Latest)

11.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -10.79% (YoY

CASH AND EQV(HY)

Highest at JPY 19,640 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 41.54%

-10What is not working for the Company

INTEREST(HY)

At JPY 20 MM has Grown at 400%

INTEREST COVERAGE RATIO(Q)

Lowest at 12,287.5

Here's what is working for Nippon Air Conditioning Services Co. Ltd.

Cash and Eqv

Highest at JPY 19,640 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 41.54%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -10.79% (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

Depreciation

Highest at JPY 144 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Nippon Air Conditioning Services Co. Ltd.

Interest

At JPY 20 MM has Grown at 400%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 12,287.5

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest