ScoreWhy is Nippon Avionics Co., Ltd. ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.75 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.75 times
2
Poor long term growth as Net Sales has grown by an annual rate of 5.59% over the last 5 years
3
The company has declared Positive results for the last 4 consecutive quarters
- ROCE(HY) Highest at 29.25%
- NET SALES(Q) At JPY 8,304 MM has Grown at 64.86%
- PRE-TAX PROFIT(Q) At JPY 1,684 MM has Grown at 203.97%
4
With ROCE of 19.79%, it has a very attractive valuation with a 3.99 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 17.03%, its profits have risen by 52.8% ; the PEG ratio of the company is 0.5
5
Underperformed the market in the last 1 year
- The stock has generated a return of 17.03% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Nippon Avionics Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Aerospace & Defense should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nippon Avionics Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Nippon Avionics Co., Ltd.
17.03%
3.13
72.28%
Japan Nikkei 225
59.79%
2.03
29.50%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.59%
EBIT Growth (5y)
25.71%
EBIT to Interest (avg)
62.29
Debt to EBITDA (avg)
0.91
Net Debt to Equity (avg)
0.20
Sales to Capital Employed (avg)
1.05
Tax Ratio
28.58%
Dividend Payout Ratio
3.94%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
16.28%
ROE (avg)
14.63%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
Price to Book Value
5.84
EV to EBIT
20.18
EV to EBITDA
17.94
EV to Capital Employed
3.99
EV to Sales
3.47
PEG Ratio
0.50
Dividend Yield
NA
ROCE (Latest)
19.79%
ROE (Latest)
22.26%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend25What is working for the Company
ROCE(HY)
Highest at 29.25%
NET SALES(Q)
At JPY 8,304 MM has Grown at 64.86%
PRE-TAX PROFIT(Q)
At JPY 1,684 MM has Grown at 203.97%
NET PROFIT(Q)
At JPY 1,148 MM has Grown at 195.88%
RAW MATERIAL COST(Y)
Fallen by -10.54% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 4.47 times
-16What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 82.59 %
INTEREST COVERAGE RATIO(Q)
Lowest at 3,654.9
CASH AND EQV(HY)
Lowest at JPY 2,407 MM
INTEREST(Q)
Highest at JPY 51 MM
Here's what is working for Nippon Avionics Co., Ltd.
Net Sales
At JPY 8,304 MM has Grown at 64.86%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Pre-Tax Profit
At JPY 1,684 MM has Grown at 203.97%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 1,148 MM has Grown at 195.88%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Inventory Turnover Ratio
Highest at 4.47 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 -10.54% (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 Nippon Avionics Co., Ltd.
Interest
At JPY 51 MM has Grown at 27.5%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 3,654.9
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debt-Equity Ratio
Highest at 82.59 % and Grown
In each half year 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
Interest
Highest at JPY 51 MM
in the last five periods and Increased by 27.5% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Cash and Eqv
Lowest at JPY 2,407 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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