Nippon Chuzo KK (5609) 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

Endo Manufacturing Co., Ltd.

Kyowakogyosyo Co., Ltd.

Kaneso Co., Ltd.

Iwabuchi Corp.

Chuo Malleable Iron Co., Ltd.

Nippon Chuzo KK

Kobelco Wire Co., Ltd.

NISSO PRONITY Co., Ltd.

Nakamura Choukou Co., Ltd.

Fine Sinter Co., Ltd.

Chita Kogyo Co., Ltd.

Why is Nippon Chuzo KK ?

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)

Poor long term growth as Operating profit has grown by an annual rate -13.30% of over the last 5 years

Flat results in Mar 26

NET SALES(HY) At JPY 6,289 MM has Grown at -23.1%
ROCE(HY) Lowest at 1.31%
INTEREST(Q) At JPY 12 MM has Grown at 33.33%

Underperformed the market in the last 1 year

The stock has generated a return of 1.12% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

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 Industrial Manufacturing)

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

Is Nippon Chuzo KK for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nippon Chuzo KK

1.12%

-0.61

21.55%

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)

2.78%

EBIT Growth (5y)

-13.30%

EBIT to Interest (avg)

48.51

Debt to EBITDA (avg)

2.10

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

0.96

Tax Ratio

27.96%

Dividend Payout Ratio

61.29%

Pledged Shares

Institutional Holding

ROCE (avg)

5.32%

ROE (avg)

5.08%

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

0.35

EV to EBIT

22.94

EV to EBITDA

6.39

EV to Capital Employed

0.44

EV to Sales

0.45

PEG Ratio

Dividend Yield

ROCE (Latest)

1.92%

ROE (Latest)

3.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

18What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 4,608.33

RAW MATERIAL COST(Y)

Fallen by -49.22% (YoY

CASH AND EQV(HY)

Highest at JPY 3,185 MM

OPERATING PROFIT(Q)

Highest at JPY 553 MM

OPERATING PROFIT MARGIN(Q)

Highest at 16.72 %

PRE-TAX PROFIT(Q)

Highest at JPY 368 MM

NET PROFIT(Q)

Highest at JPY 394 MM

-21What is not working for the Company

NET SALES(HY)

At JPY 6,289 MM has Grown at -23.1%

ROCE(HY)

Lowest at 1.31%

INTEREST(Q)

At JPY 12 MM has Grown at 33.33%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DIVIDEND PER SHARE(HY)

Lowest at JPY 2.51

Here's what is working for Nippon Chuzo KK

Pre-Tax Profit

At JPY 368 MM has Grown at 262.56%

over average net sales of the previous four periods of JPY 101.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 394 MM has Grown at 349%

over average net sales of the previous four periods of JPY 87.75 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Interest Coverage Ratio

Highest at 4,608.33

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at JPY 553 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 16.72 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 368 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 394 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 3,185 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -49.22% (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 6,289 MM has Grown at -23.1%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest

At JPY 12 MM has Grown at 33.33%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Dividend per share

Lowest at JPY 2.51

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (JPY)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)