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Nippon Denko Co., Ltd.

  • Market Cap: Small Cap
  • Industry: Industrial Manufacturing
  • ISIN: JP3734600004
JPY
325.00
-1 (-0.31%)

Dec 11

TKS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

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Comparison
Company
Score
Quality
Valuation
Financial
Technical
Maruichi Steel Tube Ltd.
Nippon Thompson Co., Ltd.
Topy Industries, Ltd.
ALCONIX Corp.
Minebea Mitsumi, Inc.
Nachi-Fujikoshi Corp.
Oiles Corp.
Neturen Co., Ltd.
Ryobi Ltd.
Mitsubishi Materials Corp.
Nippon Denko Co., Ltd.
Why is Nippon Denko Co., Ltd. ?
1
Company has a low Debt to Equity ratio (avg) at times
2
Low Debt Company with Strong Long Term Fundamental Strength
3
Negative results in Jun 25
  • ROCE(HY) Lowest at 4.24%
  • PRE-TAX PROFIT(Q) At JPY 793 MM has Fallen at -39.27%
  • NET PROFIT(Q) At JPY 443.56 MM has Fallen at -49.8%
4
With ROCE of 8.70%, it has a very attractive valuation with a 0.52 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 12.07%, its profits have fallen by -11%
  • At the current price, the company has a high dividend yield of 0.4
5
Underperformed the market in the last 1 year
  • The stock has generated a return of 12.07% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%
stock-recommendationReal-Time Research Report
Verdict Report
How much should you hold?
  1. Overall Portfolio exposure to Nippon Denko Co., Ltd. should be less than 10%
  2. 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 Denko Co., Ltd. for you?

Low Risk, Low Return

Absolute
Risk Adjusted
Volatility
Nippon Denko Co., Ltd.
12.07%
0.48
28.39%
Japan Nikkei 225
28.54%
1.11
25.75%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors
Factor
Value
Sales Growth (5y)
3.65%
EBIT Growth (5y)
32.73%
EBIT to Interest (avg)
13.05
Debt to EBITDA (avg)
0.78
Net Debt to Equity (avg)
0.10
Sales to Capital Employed (avg)
0.91
Tax Ratio
30.27%
Dividend Payout Ratio
48.02%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
9.18%
ROE (avg)
8.11%
stock-recommendationValuation
Valuation Scorecard stock-summary
stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
0.47
EV to EBIT
5.98
EV to EBITDA
4.07
EV to Capital Employed
0.52
EV to Sales
0.53
PEG Ratio
NA
Dividend Yield
0.39%
ROCE (Latest)
8.70%
ROE (Latest)
4.80%
stock-recommendationTechnicals
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend
Financial Trend Scorecard stock-summary
stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company
DIVIDEND PAYOUT RATIO(Y)

Highest at 154.98%

DEBT-EQUITY RATIO (HY)

Lowest at 10.75 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.19%

DEBTORS TURNOVER RATIO(HY)

Highest at 7.63%

-14What is not working for the Company
ROCE(HY)

Lowest at 4.24%

PRE-TAX PROFIT(Q)

At JPY 793 MM has Fallen at -39.27%

NET PROFIT(Q)

At JPY 443.56 MM has Fallen at -49.8%

RAW MATERIAL COST(Y)

Grown by 9.25% (YoY

CASH AND EQV(HY)

Lowest at JPY 11,791 MM

NET SALES(Q)

Lowest at JPY 18,725 MM

OPERATING PROFIT(Q)

Lowest at JPY 1,829 MM

Here's what is working for Nippon Denko Co., Ltd.
Dividend Payout Ratio
Highest at 154.98% and Grown
In each year in the last five years
MOJO Watch
Company is distributing higher proportion of profits generated as dividend

DPR (%)

Debt-Equity Ratio
Lowest at 10.75 %
in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio
Highest at 2.19%
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio
Highest at 7.63%
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Nippon Denko Co., Ltd.
Pre-Tax Profit
At JPY 793 MM has Fallen at -39.27%
over average net sales of the previous four periods of JPY 1,305.75 MM
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit
At JPY 443.56 MM has Fallen at -49.8%
over average net sales of the previous four periods of JPY 883.59 MM
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales
Lowest at JPY 18,725 MM
in the last five periods
MOJO Watch
Near term sales trend is negative

Net Sales (JPY MM)

Net Sales
At JPY 18,725 MM has Fallen at -6.26%
over average net sales of the previous four periods of JPY 19,976.5 MM
MOJO Watch
Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit
Lowest at JPY 1,829 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Cash and Eqv
Lowest at JPY 11,791 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost
Grown by 9.25% (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

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