Nippon Ceramic Co., Ltd. (6929) 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

Hioki E.E. Corp.

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Dexerials Corp.

Oki Electric Industry Co., Ltd.

Riken Keiki Co., Ltd.

Nippon Ceramic Co., Ltd.

Glory Ltd.

Toshiba Tec Corp.

Topcon Corp.

Why is Nippon Ceramic Co., Ltd. ?

Poor Management Efficiency with a low ROE of 6.97%

The company has been able to generate a Return on Equity (avg) of 6.97% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 6.97%

Poor long term growth as Net Sales has grown by an annual rate of 8.43% and Operating profit at 14.60% over the last 5 years
The company has been able to generate a Return on Equity (avg) of 6.97% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.43% and Operating profit at 14.60% over the last 5 years

Flat results in Jun 26

CASH AND EQV(HY) Lowest at JPY 54,139 MM
DEBT-EQUITY RATIO (HY) Highest at -61.28 %
OPERATING PROFIT MARGIN(Q) Lowest at 26.38 %

With ROE of 17.45%, it has a very attractive valuation with a 2.34 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 5.64%, its profits have risen by 74.5% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nippon Ceramic Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Nippon Ceramic Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Nippon Ceramic Co., Ltd.

5.64%

1.62

25.48%

Japan Nikkei 225

43.52%

1.48

29.43%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.43%

EBIT Growth (5y)

14.60%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.59

Sales to Capital Employed (avg)

0.54

Tax Ratio

29.56%

Dividend Payout Ratio

50.83%

Pledged Shares

Institutional Holding

ROCE (avg)

26.19%

ROE (avg)

6.97%

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

2.34

EV to EBIT

12.18

EV to EBITDA

10.10

EV to Capital Employed

4.27

EV to Sales

2.82

PEG Ratio

0.18

Dividend Yield

0.04%

ROCE (Latest)

35.08%

ROE (Latest)

17.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

Mildly 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

4What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 3.83 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.75 times

NET SALES(Q)

Highest at JPY 7,126 MM

-11What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 54,139 MM

DEBT-EQUITY RATIO (HY)

Highest at -61.28 %

OPERATING PROFIT MARGIN(Q)

Lowest at 26.38 %

PRE-TAX PROFIT(Q)

Lowest at JPY 1,810 MM

NET PROFIT(Q)

Lowest at JPY 1,314 MM

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

Inventory Turnover Ratio

Highest at 3.83 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at JPY 7,126 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debtors Turnover Ratio

Highest at 3.75 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Operating Profit Margin

Lowest at 26.38 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 1,810 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 1,810 MM has Fallen at -33.63%

over average net sales of the previous four periods of JPY 2,727 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 1,314 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

At JPY 1,314 MM has Fallen at -31.42%

over average net sales of the previous four periods of JPY 1,916.03 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Cash and Eqv

Lowest at JPY 54,139 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -61.28 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

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