Nippon Care Supply Co., Ltd. (2393) 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

J Trust Co., Ltd.

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Ichinen Holdings Co. Ltd.

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Gecoss Corp.

Kanamoto Co., Ltd.

Nippon Care Supply Co., Ltd.

Nishio Holdings Co., Ltd.

Ricoh Leasing Co., Ltd.

SBI ARUHI Corp.

Why is Nippon Care Supply Co., Ltd. ?

High Management Efficiency with a high ROE of 10.44%

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 2.62% of over the last 5 years

With a growth in Net Profit of 16.58%, the company declared Very Positive results in Mar 26

ROCE(HY) Highest at 12.49%
NET SALES(Q) Highest at JPY 8,987.92 MM
RAW MATERIAL COST(Y) Fallen by -2.17% (YoY)

With ROE of 11.92%, it has a expensive valuation with a 2.21 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 118.30%, its profits have risen by 21.7% ; the PEG ratio of the company is 0.9

Market Beating performance in long term as well as near term

Along with generating 118.30% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nippon Care Supply Co., Ltd. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

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

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

Is Nippon Care Supply Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Nippon Care Supply Co., Ltd.

118.3%

3.27

39.63%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.76%

EBIT Growth (5y)

2.62%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

1.62

Tax Ratio

28.35%

Dividend Payout Ratio

60.69%

Pledged Shares

Institutional Holding

ROCE (avg)

15.31%

ROE (avg)

10.44%

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

2.21

EV to EBIT

13.52

EV to EBITDA

3.99

EV to Capital Employed

2.14

EV to Sales

1.19

PEG Ratio

0.85

Dividend Yield

ROCE (Latest)

15.81%

ROE (Latest)

11.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Bullish

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

9What is working for the Company

ROCE(HY)

Highest at 12.49%

NET SALES(Q)

Highest at JPY 8,987.92 MM

RAW MATERIAL COST(Y)

Fallen by -2.17% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 1.95 %

DIVIDEND PER SHARE(HY)

Highest at JPY 7.51

NET PROFIT(Q)

Highest at JPY 636.01 MM

EPS(Q)

Highest at JPY 41.04

-4What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 98.6 times

DIVIDEND PAYOUT RATIO(Y)

Lowest at 175.45%

OPERATING PROFIT MARGIN(Q)

Lowest at 28.16 %

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

Net Sales

Highest at JPY 8,987.92 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Profit

Highest at JPY 636.01 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 41.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at 1.95 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at JPY 7.51

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -2.17% (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 Care Supply Co., Ltd.

Inventory Turnover Ratio

Lowest at 98.6 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit Margin

Lowest at 28.16 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Dividend Payout Ratio

Lowest at 175.45%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)