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

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Hazama Ando Corp.

Nippon Densetsu Kogyo Co., Ltd.

Japan Elevator Service Holdings Co., Ltd.

Okumura Corp.

MIRAIT One Corp.

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

Flat results in Dec 25

CASH AND EQV(HY) Lowest at JPY 43,279 MM
DEBT-EQUITY RATIO (HY) Highest at 1.9 %
INVENTORY TURNOVER RATIO(HY) Lowest at 14.14 times

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 122.73%, its profits have risen by 33.6% ; the PEG ratio of the company is 0.3

Market Beating performance in long term as well as near term

Along with generating 122.73% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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.

122.73%

4.39

34.40%

Japan Nikkei 225

36.73%

1.30

28.24%

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)

1.06

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

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

Bullish

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

11What is working for the Company

ROCE(HY)

Highest at 9.35%

RAW MATERIAL COST(Y)

Fallen by -35.9% (YoY

PRE-TAX PROFIT(Q)

At JPY 7,658 MM has Grown at 86.51%

NET PROFIT(Q)

At JPY 5,097 MM has Grown at 95.59%

-10What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 43,279 MM

DEBT-EQUITY RATIO (HY)

Highest at 1.9 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 14.14 times

INTEREST(Q)

Highest at JPY 25 MM

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

Pre-Tax Profit

At JPY 7,658 MM has Grown at 86.51%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 5,097 MM has Grown at 95.59%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -35.9% (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 1,276 MM

in the last five periods

MOJO 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 Densetsu Kogyo Co., Ltd.

Interest

At JPY 25 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 25 MM

in the last five periods and Increased by inf% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 43,279 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 1.9 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 14.14 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio