Nippon Chutetsukan KK (5612) 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

Canox Corp.

Pacific Metals Co., Ltd.

Seiwa Chuo Holdings Corp.

Mory Industries Inc.

Tohoku Steel Co., Ltd.

Nippon Chutetsukan KK

Nichia Steel Works, Ltd.

Nippon Kinzoku Co., Ltd.

Nippon Koshuha Steel Co., Ltd.

Kogi Corp.

Hokuetsu Metal Co., Ltd.

Why is Nippon Chutetsukan KK ?

Poor Management Efficiency with a low ROE of 4.28%

The company has been able to generate a Return on Equity (avg) of 4.28% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 4.28%

The company has been able to generate a Return on Equity (avg) of 4.28% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 4.28%

Flat results in Jun 26

DEBT-EQUITY RATIO (HY) Highest at 61.5 %
INVENTORY TURNOVER RATIO(HY) Lowest at 2.86 times
NET SALES(Q) Lowest at JPY 3,758 MM

Underperformed the market in the last 1 year

The stock has generated a return of 2.22% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

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 Ferrous Metals)

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

Is Nippon Chutetsukan KK for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nippon Chutetsukan KK

5.04%

0.07

55.30%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.72%

EBIT Growth (5y)

-27.17%

EBIT to Interest (avg)

22.54

Debt to EBITDA (avg)

2.38

Net Debt to Equity (avg)

0.29

Sales to Capital Employed (avg)

1.11

Tax Ratio

63.34%

Dividend Payout Ratio

88.27%

Pledged Shares

Institutional Holding

ROCE (avg)

4.44%

ROE (avg)

4.28%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.54

EV to EBIT

67.38

EV to EBITDA

12.18

EV to Capital Employed

0.70

EV to Sales

0.63

PEG Ratio

Dividend Yield

ROCE (Latest)

1.04%

ROE (Latest)

-0.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

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

11What is working for the Company

NET PROFIT(HY)

Higher at JPY -30 MM

PRE-TAX PROFIT(Q)

At JPY 29 MM has Grown at 146.77%

RAW MATERIAL COST(Y)

Fallen by -35.72% (YoY

-15What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 61.5 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.86 times

NET SALES(Q)

Lowest at JPY 3,758 MM

INTEREST(Q)

Highest at JPY 32 MM

Here's what is working for Nippon Chutetsukan KK

Pre-Tax Profit

At JPY 29 MM has Grown at 146.77%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

Higher at JPY -30 MM

than preceding 12 month period ended Jun 2026

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (JPY MM)

Net Profit

At JPY -30 MM has Grown at 78.99%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -35.72% (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

Depreciation

At JPY 202 MM has Grown at 34.67%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Nippon Chutetsukan KK

Interest

At JPY 32 MM has Grown at 10.34%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 61.5 % and Grown

In each half year 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

Net Sales

Lowest at JPY 3,758 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 32 MM

in the last five periods and Increased by 10.34% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 2.86 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio