ScoreWhy is Nippon Chuzo KK ?
1
Poor Management Efficiency with a low ROCE of 5.32%
- The company has been able to generate a Return on Capital Employed (avg) of 5.32% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Operating profit has grown by an annual rate -0.76% of over the last 5 years
3
The company has declared Negative results for the last 4 consecutive quarters
- NET SALES(Q) At JPY 2,991 MM has Fallen at -16.4%
- PRE-TAX PROFIT(Q) At JPY 8 MM has Fallen at -90.27%
- NET PROFIT(Q) At JPY 7 MM has Fallen at -88.14%
4
With ROCE of 2.71%, it has a very attractive valuation with a 0.47 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 7.70%, its profits have fallen by -76.2%
5
Underperformed the market in the last 1 year
- The stock has generated a return of 7.70% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Nippon Chuzo KK should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nippon Chuzo KK for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Nippon Chuzo KK
5.92%
-0.70
25.17%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.43%
EBIT Growth (5y)
-0.76%
EBIT to Interest (avg)
48.51
Debt to EBITDA (avg)
2.10
Net Debt to Equity (avg)
0.27
Sales to Capital Employed (avg)
0.97
Tax Ratio
27.96%
Dividend Payout Ratio
61.29%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.32%
ROE (avg)
5.08%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
0.33
EV to EBIT
17.51
EV to EBITDA
6.79
EV to Capital Employed
0.47
EV to Sales
0.50
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
2.71%
ROE (Latest)
1.99%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -21.58% (YoY
-31What is not working for the Company
NET SALES(Q)
At JPY 2,991 MM has Fallen at -16.4%
PRE-TAX PROFIT(Q)
At JPY 8 MM has Fallen at -90.27%
NET PROFIT(Q)
At JPY 7 MM has Fallen at -88.14%
ROCE(HY)
Lowest at 2.23%
INTEREST(Q)
At JPY 11 MM has Grown at 22.22%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,809.09
Here's what is working for Nippon Chuzo KK
Raw Material Cost
Fallen by -21.58% (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 Chuzo KK
Net Sales
At JPY 2,991 MM has Fallen at -16.4%
over average net sales of the previous four periods of JPY 3,577.75 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (JPY MM)
Pre-Tax Profit
At JPY 8 MM has Fallen at -90.27%
over average net sales of the previous four periods of JPY 82.25 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 7 MM has Fallen at -88.14%
over average net sales of the previous four periods of JPY 59 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 11 MM has Grown at 22.22%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 1,809.09
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 11 MM
in the last five periods and Increased by 22.22% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
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