Nippon Chemi-Con Corp. (6997) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Yamaichi Electronics Co., Ltd.

Meiko Electronics Co., Ltd.

Tamura Corp.

Hagiwara Electric Holdings Co., Ltd.

Nichicon Corp.

IRISO Electronics Co., Ltd.

Takaoka Toko Co., Ltd.

Nippon Chemi-Con Corp.

CMK Corp.

Ohara, Inc.

MegaChips Corp.

Why is Nippon Chemi-Con Corp. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 1.37% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Healthy long term growth as Operating profit has grown by an annual rate 26.92%

The company has declared Negative results for the last 7 consecutive quarters

PRE-TAX PROFIT(Q) At JPY -187 MM has Fallen at -148.67%
NET PROFIT(Q) At JPY -174 MM has Fallen at -168.91%
RAW MATERIAL COST(Y) Grown by 12.81% (YoY)

With ROCE of 3.49%, it has a attractive valuation with a 0.70 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 43.44%, its profits have fallen by -87.4%
At the current price, the company has a high dividend yield of 0.1

Market Beating Performance

The stock has generated a return of 43.44% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nippon Chemi-Con Corp. 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 Chemi-Con Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nippon Chemi-Con Corp.

43.44%

-0.19

53.18%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.37%

EBIT Growth (5y)

26.92%

EBIT to Interest (avg)

4.57

Debt to EBITDA (avg)

2.96

Net Debt to Equity (avg)

0.91

Sales to Capital Employed (avg)

1.16

Tax Ratio

88.30%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.08%

ROCE (avg)

8.62%

ROE (avg)

9.94%

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

0.43

EV to EBIT

20.12

EV to EBITDA

6.95

EV to Capital Employed

0.70

EV to Sales

0.61

PEG Ratio

Dividend Yield

0.08%

ROCE (Latest)

3.49%

ROE (Latest)

1.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

3What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 513.78

DEBTORS TURNOVER RATIO(HY)

Highest at 5.38%

-19What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY -187 MM has Fallen at -148.67%

NET PROFIT(Q)

At JPY -174 MM has Fallen at -168.91%

RAW MATERIAL COST(Y)

Grown by 12.81% (YoY

CASH AND EQV(HY)

Lowest at JPY 48,004 MM

DEBT-EQUITY RATIO (HY)

Highest at 97.16 %

OPERATING PROFIT(Q)

Lowest at JPY 1,901 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.16 %

Here's what is working for Nippon Chemi-Con Corp.

Interest Coverage Ratio

Highest at 513.78

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debtors Turnover Ratio

Highest at 5.38%

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 Chemi-Con Corp.

Pre-Tax Profit

At JPY -187 MM has Fallen at -148.67%

over average net sales of the previous four periods of JPY 384.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -174 MM has Fallen at -168.91%

over average net sales of the previous four periods of JPY 252.5 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit

Lowest at JPY 1,901 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 6.16 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at JPY 48,004 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 97.16 %

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

Raw Material Cost

Grown by 12.81% (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