Nippon Denko Co., Ltd. (5563) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

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

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Nippon Denko Co., Ltd.

Why is Nippon Denko Co., Ltd. ?

Company has a low Debt to Equity ratio (avg) at times

Low Debt Company with Strong Long Term Fundamental Strength

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%

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 46.74%, its profits have fallen by -11%
At the current price, the company has a high dividend yield of 0.4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nippon Denko Co., Ltd. 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 Denko Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Nippon Denko Co., Ltd.

40.85%

1.38

30.19%

Japan Nikkei 225

38.59%

1.50

26.58%

Quality

Management Risk

Growth

Capital Structure

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

Institutional Holding

ROCE (avg)

9.18%

ROE (avg)

8.11%

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

5.98

EV to EBITDA

4.07

EV to Capital Employed

0.52

EV to Sales

0.53

PEG Ratio

Dividend Yield

0.39%

ROCE (Latest)

8.70%

ROE (Latest)

4.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

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