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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

MEITEC Group Holdings, Inc.

MIRAIT One Corp.

Okumura Corp.

Kumagai Gumi Co., Ltd.

CHUDENKO CORP.

Penta-Ocean Construction Co., Ltd.

Hazama Ando Corp.

Toda Corp.

Nippon Densetsu Kogyo Co., Ltd.

Japan Elevator Service Holdings Co., Ltd.

Hitachi Zosen Corp.

Why is Nippon Densetsu Kogyo Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 1.82% and Operating profit at 1.69% over the last 5 years

Positive results in Jun 25

PRE-TAX PROFIT(Q) At JPY 678 MM has Grown at 503.57%
NET PROFIT(Q) At JPY 592 MM has Grown at 1,476.74%
ROCE(HY) Highest at 7.38%

With ROE of 7.11%, it has a very attractive valuation with a 0.76 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 55.32%, its profits have risen by 33.6% ; the PEG ratio of the company is 0.3

Market Beating Performance

The stock has generated a return of 55.32% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%

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.

57.04%

2.20

26.29%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.82%

EBIT Growth (5y)

1.69%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

1.05

Tax Ratio

31.13%

Dividend Payout Ratio

40.21%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

8.66%

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

0.76

EV to EBIT

6.96

EV to EBITDA

5.57

EV to Capital Employed

0.72

EV to Sales

0.58

PEG Ratio

0.32

Dividend Yield

ROCE (Latest)

10.39%

ROE (Latest)

7.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Bullish

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

12What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 678 MM has Grown at 503.57%

NET PROFIT(Q)

At JPY 592 MM has Grown at 1,476.74%

ROCE(HY)

Highest at 7.38%

RAW MATERIAL COST(Y)

Fallen by -11.2% (YoY

-8What is not working for the Company

INTEREST(9M)

At JPY 27 MM has Grown at inf%

INTEREST COVERAGE RATIO(Q)

Lowest at 10,933.33

CASH AND EQV(HY)

Lowest at JPY 59,633 MM

NET SALES(Q)

Lowest at JPY 30,234 MM

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

Pre-Tax Profit

At JPY 678 MM has Grown at 503.57%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 592 MM has Grown at 1,476.74%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -11.2% (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

Here's what is not working for Nippon Densetsu Kogyo Co., Ltd.

Interest

At JPY 27 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 10,933.33

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 30,234 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Cash and Eqv

Lowest at JPY 59,633 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents