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.

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CHUDENKO CORP.

MIRAIT One Corp.

Nippon Densetsu Kogyo Co., Ltd.

Kumagai Gumi Co., Ltd.

Okumura 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 2.22% and Operating profit at 6.83% over the last 5 years

Flat results in Mar 26

DEBTORS TURNOVER RATIO(HY) Lowest at 1.59 times
INTEREST(Q) Highest at JPY 51 MM

With ROE of 9.25%, it has a very attractive valuation with a 1.57 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 77.99%, its profits have risen by 71.9% ; the PEG ratio of the company is 0.2

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 Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

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

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Nippon Densetsu Kogyo Co., Ltd.

77.99%

3.74

34.62%

Japan Nikkei 225

75.22%

3.09

27.80%

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)

1.07

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

1.57

EV to EBIT

13.17

EV to EBITDA

10.93

EV to Capital Employed

1.59

EV to Sales

1.40

PEG Ratio

0.24

Dividend Yield

ROCE (Latest)

12.07%

ROE (Latest)

9.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

10What is working for the Company

ROCE(HY)

Highest at 8.78%

DIVIDEND PER SHARE(HY)

Highest at JPY 1.59

DIVIDEND PAYOUT RATIO(Y)

Highest at 71.44%

INVENTORY TURNOVER RATIO(HY)

Highest at 41.79 times

NET SALES(Q)

Highest at JPY 93,916 MM

PRE-TAX PROFIT(Q)

Highest at JPY 15,527 MM

NET PROFIT(Q)

Highest at JPY 10,399.93 MM

-12What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.59 times

INTEREST(Q)

Highest at JPY 51 MM

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

Dividend per share

Highest at JPY 1.59 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 93,916 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 15,527 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 10,399.93 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 41.79 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 71.44%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at JPY 1,416 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 51 MM has Grown at 104%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 51 MM

in the last five periods and Increased by 104% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 1.59 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio