Nippon Densetsu Kogyo Co., Ltd. (1950) 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

MEITEC Group Holdings, Inc.

Hazama Ando Corp.

Japan Elevator Service Holdings Co., Ltd.

Toda Corp.

Penta-Ocean Construction Co., Ltd.

Nippon Densetsu Kogyo Co., Ltd.

CHUDENKO CORP.

MIRAIT One Corp.

Kumagai Gumi Co., Ltd.

Okumura Corp.

Hitachi Zosen Corp.

Why is Nippon Densetsu Kogyo Co., Ltd. ?

Poor Management Efficiency with a low ROE of 5.20%

The company has been able to generate a Return on Equity (avg) of 5.20% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 6.83% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 5.20% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.22% and Operating profit at 6.83% over the last 5 years

Flat results in Jun 26

INTEREST(HY) At JPY 63 MM has Grown at 133.33%

With ROE of 9.25%, it has a fair valuation with a 1.34 Price to Book Value

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 31.98%, its profits have risen by 71.9% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 31.98% 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 Densetsu Kogyo Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Nippon Densetsu Kogyo Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Nippon Densetsu Kogyo Co., Ltd.

31.98%

2.69

36.14%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.22%

EBIT Growth (5y)

6.83%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

1.06

Tax Ratio

30.42%

Dividend Payout Ratio

40.10%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

8.89%

ROE (avg)

5.20%

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

1.34

EV to EBIT

11.21

EV to EBITDA

9.31

EV to Capital Employed

1.35

EV to Sales

1.19

PEG Ratio

0.20

Dividend Yield

ROCE (Latest)

12.07%

ROE (Latest)

9.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

8What is working for the Company

ROCE(HY)

Highest at 9.44%

PRE-TAX PROFIT(Q)

At JPY 2,088 MM has Grown at 207.96%

NET PROFIT(Q)

At JPY 1,505.06 MM has Grown at 154.23%

RAW MATERIAL COST(Y)

Fallen by -70.25% (YoY

-8What is not working for the Company

INTEREST(HY)

At JPY 63 MM has Grown at 133.33%

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

Pre-Tax Profit

At JPY 2,088 MM has Grown at 207.96%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,505.06 MM has Grown at 154.23%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -70.25% (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 Densetsu Kogyo Co., Ltd.

Interest

At JPY 63 MM has Grown at 133.33%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)