ScoreWhy is Nippon Carbon Co., Ltd. ?
1
High Management Efficiency with a high ROE of 7.62%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 87.51
3
Poor long term growth as Net Sales has grown by an annual rate of -0.83% and Operating profit at -11.67% over the last 5 years
4
The company has declared Negative results for the last 3 consecutive quarters
- INTEREST COVERAGE RATIO(Q) Lowest at 8,338.46
- DIVIDEND PAYOUT RATIO(Y) Lowest at 68.17%
- DEBT-EQUITY RATIO (HY) Highest at -4.98 %
5
With ROE of 8.70%, it has a very attractive valuation with a 0.98 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 -1.44%, its profits have fallen by -10.5%
- At the current price, the company has a high dividend yield of 0
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -1.44% 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 ReportHow much should you hold?
- Overall Portfolio exposure to Nippon Carbon 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 Carbon Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Nippon Carbon Co., Ltd.
-1.44%
-1.07
17.13%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-0.83%
EBIT Growth (5y)
-11.67%
EBIT to Interest (avg)
87.51
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.02
Sales to Capital Employed (avg)
0.63
Tax Ratio
29.10%
Dividend Payout Ratio
54.21%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.08%
ROE (avg)
7.62%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
0.98
EV to EBIT
8.43
EV to EBITDA
5.49
EV to Capital Employed
0.98
EV to Sales
1.31
PEG Ratio
NA
Dividend Yield
0.02%
ROCE (Latest)
11.57%
ROE (Latest)
8.70%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Sideways
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
PRE-TAX PROFIT(Q)
Highest at JPY 2,566 MM
NET PROFIT(Q)
Highest at JPY 1,623 MM
EPS(Q)
Highest at JPY 146.7
-21What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 8,338.46
DIVIDEND PAYOUT RATIO(Y)
Lowest at 68.17%
DEBT-EQUITY RATIO
(HY)
Highest at -4.98 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.31%
RAW MATERIAL COST(Y)
Grown by 13.16% (YoY
CASH AND EQV(HY)
Lowest at JPY 22,943 MM
INTEREST(Q)
Highest at JPY 26 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 20.95 %
Here's what is working for Nippon Carbon Co., Ltd.
Pre-Tax Profit
Highest at JPY 2,566 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 1,623 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 146.7
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Depreciation
Highest at JPY 886 MM
in the last five periodsMOJO 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 Carbon Co., Ltd.
Interest Coverage Ratio
Lowest at 8,338.46 and Fallen
In each period 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 -4.98 % 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
Inventory Turnover Ratio
Lowest at 1.31% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Dividend Payout Ratio
Lowest at 68.17% and Fallen
In each year in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Interest
Highest at JPY 26 MM
in the last five periods and Increased by 8.33% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit Margin
Lowest at 20.95 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Cash and Eqv
Lowest at JPY 22,943 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Raw Material Cost
Grown by 13.16% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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