Nippon Concrete Industries Co., Ltd. (5269) 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

ASIA PILE HOLDINGS Corp.

Nichiha Corp.

Mitani Sekisan Co., Ltd.

Vertex Corp.

Maeda Kosen Co., Ltd.

TYK Corp.

Nippon Concrete Industries Co., Ltd.

Nippon Hume Corp.

Mitsui Matsushima Holdings Co., Ltd.

Sumitomo Osaka Cement Co., Ltd.

Taiheiyo Cement Corp.

Why is Nippon Concrete Industries Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.36%

The company has been able to generate a Return on Capital Employed (avg) of 3.36% signifying low profitability per unit of total capital (equity and debt)

Weak Long Term Fundamental Strength with a -39.96% CAGR growth in Operating Profits over the last 5 years

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 Operating profit has grown by an annual rate -39.96% of over the last 5 years

Flat results in Mar 26

PRE-TAX PROFIT(Q) At JPY 141.42 MM has Fallen at -67.94%
CASH AND EQV(HY) Lowest at JPY 15,303.12 MM
INTEREST(Q) Highest at JPY 36.32 MM

With ROE of 1.81%, it has a very attractive valuation with a 0.47 Price to Book Value

Over the past year, while the stock has generated a return of 5.56%, its profits have risen by 85.3% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 5.56% 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 hold?

Overall Portfolio exposure to Nippon Concrete Industries Co., Ltd. should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Nippon Concrete Industries Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nippon Concrete Industries Co., Ltd.

14.84%

-0.14

30.55%

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)

1.31%

EBIT Growth (5y)

-39.96%

EBIT to Interest (avg)

11.43

Debt to EBITDA (avg)

2.05

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

1.01

Tax Ratio

54.46%

Dividend Payout Ratio

63.50%

Pledged Shares

Institutional Holding

ROCE (avg)

2.11%

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

0.47

EV to EBIT

133.58

EV to EBITDA

12.52

EV to Capital Employed

0.53

EV to Sales

0.47

PEG Ratio

0.31

Dividend Yield

ROCE (Latest)

0.40%

ROE (Latest)

1.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

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)

At JPY 230.19 MM has Grown at 1,776.2%

DIVIDEND PAYOUT RATIO(Y)

Highest at 196.08%

RAW MATERIAL COST(Y)

Fallen by -17.22% (YoY

-13What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 141.42 MM has Fallen at -67.94%

CASH AND EQV(HY)

Lowest at JPY 15,303.12 MM

INTEREST(Q)

Highest at JPY 36.32 MM

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

Net Profit

At JPY 230.19 MM has Grown at 1,776.2%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (JPY MM)

Dividend Payout Ratio

Highest at 196.08%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -17.22% (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 Concrete Industries Co., Ltd.

Pre-Tax Profit

At JPY 141.42 MM has Fallen at -67.94%

over average net sales of the previous four periods of JPY 441.07 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest

Highest at JPY 36.32 MM

in the last five periods and Increased by 6.71% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 15,303.12 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Non Operating Income

Highest at JPY 4.31 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income