Nippon Aqua Co., Ltd. (1429) 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

Nitta Corp.

Sakata Inx Corp.

Chugoku Marine Paints, Ltd.

Central Glass Co., Ltd.

Matsumoto Yushi-Seiyaku Co., Ltd.

Nippon Aqua Co., Ltd.

TOCALO Co., Ltd.

Nippon Carbon Co., Ltd.

Konishi Co., Ltd.

Fujimori Kogyo Co., Ltd.

SK Kaken Co., Ltd.

Why is Nippon Aqua Co., Ltd. ?

High Management Efficiency with a high ROCE of 21.46%

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

Negative results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 3,993.31
INTEREST(Q) Highest at JPY 14.94 MM
PRE-TAX PROFIT(Q) Lowest at JPY 520.45 MM

With ROCE of 19.76%, it has a very attractive valuation with a 2.05 Enterprise value to Capital Employed

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 -9.18%, its profits have risen by 3.1% ; the PEG ratio of the company is 4.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.18% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nippon Aqua Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

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

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

Is Nippon Aqua Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nippon Aqua Co., Ltd.

-9.5%

-0.86

26.16%

Japan Nikkei 225

71.75%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.01%

EBIT Growth (5y)

7.90%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.86

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

2.17

Tax Ratio

29.31%

Dividend Payout Ratio

58.89%

Pledged Shares

Institutional Holding

ROCE (avg)

21.46%

ROE (avg)

18.79%

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

2.26

EV to EBIT

10.35

EV to EBITDA

9.61

EV to Capital Employed

2.05

EV to Sales

0.85

PEG Ratio

4.44

Dividend Yield

ROCE (Latest)

19.76%

ROE (Latest)

16.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

No Trend

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.96% (YoY

CASH AND EQV(HY)

Highest at JPY 5,105.33 MM

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 3,993.31

INTEREST(Q)

Highest at JPY 14.94 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 520.45 MM

NET PROFIT(Q)

Lowest at JPY 341.35 MM

EPS(Q)

Lowest at JPY 10.61

Here's what is working for Nippon Aqua Co., Ltd.

Cash and Eqv

Highest at JPY 5,105.33 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -4.96% (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 89.4 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Depreciation

At JPY 89.4 MM has Grown at 67.54%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

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

Interest

At JPY 14.94 MM has Grown at 33.55%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 3,993.31

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 14.94 MM

in the last five periods and Increased by 33.55% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Lowest at JPY 520.45 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 341.35 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 10.61

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Non Operating Income

Highest at JPY 0.05 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income