Nippon Chemiphar Co., Ltd. (4539) 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

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Nippon Chemiphar Co., Ltd.

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SymBio Pharmaceuticals Ltd.

CanBas Co., Ltd.

BrightPath Biotherapeutics Co., Ltd.

Why is Nippon Chemiphar Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.68%

The company has been able to generate a Return on Capital Employed (avg) of 1.68% signifying low profitability per unit of total capital (equity and debt)

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.89

Poor long term growth as Net Sales has grown by an annual rate of 0.90% and Operating profit at 18.19% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.89
The company has been able to generate a Return on Equity (avg) of 2.50% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 0.90% and Operating profit at 18.19% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(9M) At JPY 173 MM has Grown at 11.61%
PRE-TAX PROFIT(Q) At JPY 17 MM has Fallen at -88.91%
NET PROFIT(Q) At JPY 75 MM has Fallen at -52.46%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Nippon Chemiphar Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nippon Chemiphar Co., Ltd.

6.38%

0.01

22.36%

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)

0.90%

EBIT Growth (5y)

18.19%

EBIT to Interest (avg)

1.89

Debt to EBITDA (avg)

4.02

Net Debt to Equity (avg)

0.52

Sales to Capital Employed (avg)

0.88

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

61.36%

Pledged Shares

Institutional Holding

ROCE (avg)

1.68%

ROE (avg)

2.50%

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

0.39

EV to EBIT

37.37

EV to EBITDA

8.75

EV to Capital Employed

0.59

EV to Sales

0.53

PEG Ratio

0.02

Dividend Yield

ROCE (Latest)

1.59%

ROE (Latest)

3.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

1What is working for the Company

NET SALES(Q)

Highest at JPY 8,833 MM

-20What is not working for the Company

INTEREST(9M)

At JPY 173 MM has Grown at 11.61%

PRE-TAX PROFIT(Q)

At JPY 17 MM has Fallen at -88.91%

NET PROFIT(Q)

At JPY 75 MM has Fallen at -52.46%

RAW MATERIAL COST(Y)

Grown by 11.89% (YoY

CASH AND EQV(HY)

Lowest at JPY 12,347 MM

DEBT-EQUITY RATIO (HY)

Highest at 57.62 %

EPS(Q)

Lowest at JPY -24.28

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

Net Sales

Highest at JPY 8,833 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Depreciation

Highest at JPY 419 MM

in the last five periods

MOJO 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 Chemiphar Co., Ltd.

Pre-Tax Profit

At JPY 17 MM has Fallen at -88.91%

over average net sales of the previous four periods of JPY 153.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest

At JPY 173 MM has Grown at 11.61%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 75 MM has Fallen at -52.46%

over average net sales of the previous four periods of JPY 157.75 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

EPS

Lowest at JPY -24.28

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 12,347 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 57.62 %

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 11.89% (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