Nippon Denko Co., Ltd.

Market Cap: Small Cap
Industry: Industrial Manufacturing
ISIN: JP3734600004

JPY

460.00

-7 (-1.5%)

Jun 24

TKS

View all stocks in this country

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Topy Industries, Ltd.

Nippon Thompson Co., Ltd.

Minebea Mitsumi, Inc.

Oiles Corp.

Neturen Co., Ltd.

ALCONIX Corp.

Maruichi Steel Tube Ltd.

Ryobi Ltd.

Mitsubishi Materials Corp.

Nachi-Fujikoshi Corp.

Nippon Denko Co., Ltd.

Why is Nippon Denko Co., Ltd. ?

Flat results in Mar 26

NET PROFIT(9M) At JPY 1,511 MM has Grown at -43.69%
ROCE(HY) Lowest at 2.69%

With ROCE of 6.87%, it has a very attractive valuation with a 0.90 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 89.84%, its profits have fallen by -55.6%
At the current price, the company has a high dividend yield of 0.3

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 Denko Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nippon Denko Co., Ltd.

85.48%

1.71

37.10%

Japan Nikkei 225

81.96%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.43%

EBIT Growth (5y)

-1.03%

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

112.23%

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

0.90

EV to EBIT

13.12

EV to EBITDA

7.68

EV to Capital Employed

0.90

EV to Sales

0.88

PEG Ratio

Dividend Yield

0.32%

ROCE (Latest)

6.87%

ROE (Latest)

2.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -40.6% (YoY

PRE-TAX PROFIT(Q)

At JPY 1,126 MM has Grown at 66.69%

-5What is not working for the Company

NET PROFIT(9M)

At JPY 1,511 MM has Grown at -43.69%

ROCE(HY)

Lowest at 2.69%

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

Pre-Tax Profit

At JPY 1,126 MM has Grown at 66.69%

over average net sales of the previous four periods of JPY 675.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by -40.6% (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 Denko Co., Ltd.

Net Profit

At JPY 1,511 MM has Grown at -43.69%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)