ScoreWhy is Nippon Denko Co., Ltd. ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.27 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.27 times
- The company has been able to generate a Return on Equity (avg) of 8.11% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 7.20% and Operating profit at 3.24% over the last 5 years
3
Negative results in Jun 26
- ROCE(HY) Lowest at -2.45%
- DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
- CASH AND EQV(HY) Lowest at JPY 11,445 MM
4
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 46.80%, its profits have fallen by -44.7%
- At the current price, the company has a high dividend yield of 0.3
5
Underperformed the market in the last 1 year
- The stock has generated a return of 46.80% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%
Real-Time Research ReportHow 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?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Nippon Denko Co., Ltd.
46.8%
1.33
39.55%
Japan Nikkei 225
59.79%
2.03
29.50%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.20%
EBIT Growth (5y)
3.24%
EBIT to Interest (avg)
13.06
Debt to EBITDA (avg)
0.77
Net Debt to Equity (avg)
0.10
Sales to Capital Employed (avg)
0.91
Tax Ratio
43.28%
Dividend Payout Ratio
112.23%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
9.04%
ROE (avg)
8.11%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
34
Industry P/E
Price to Book Value
0.93
EV to EBIT
11.82
EV to EBITDA
7.28
EV to Capital Employed
0.93
EV to Sales
0.94
PEG Ratio
NA
Dividend Yield
0.31%
ROCE (Latest)
7.90%
ROE (Latest)
2.73%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 2,934.25
RAW MATERIAL COST(Y)
Fallen by -87.2% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 7.67 times
OPERATING PROFIT(Q)
Highest at JPY 4,284 MM
OPERATING PROFIT MARGIN(Q)
Highest at 22.12 %
-21What is not working for the Company
ROCE(HY)
Lowest at -2.45%
DIVIDEND PAYOUT RATIO(Y)
Lowest at 0%
CASH AND EQV(HY)
Lowest at JPY 11,445 MM
PRE-TAX PROFIT(Q)
Lowest at JPY -4,078 MM
NET PROFIT(Q)
Lowest at JPY -3,116 MM
EPS(Q)
Lowest at JPY -26.04
Here's what is working for Nippon Denko Co., Ltd.
Interest Coverage Ratio
Highest at 2,934.25
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit
Highest at JPY 4,284 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 22.12 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Debtors Turnover Ratio
Highest at 7.67 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -87.2% (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
Depreciation
Highest at JPY 1,031 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Nippon Denko Co., Ltd.
Pre-Tax Profit
At JPY -4,078 MM has Fallen at -573.36%
over average net sales of the previous four periods of JPY 861.5 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY -3,116 MM has Fallen at -737.69%
over average net sales of the previous four periods of JPY 488.64 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Pre-Tax Profit
Lowest at JPY -4,078 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY -3,116 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY -26.04
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Cash and Eqv
Lowest at JPY 11,445 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Dividend Payout Ratio
Lowest at 0%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
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