Nippon Dry-Chemical Co., Ltd. (1909) 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

Nippon Dry-Chemical Co., Ltd.

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Why is Nippon Dry-Chemical Co., Ltd. ?

Strong Long Term Fundamental Strength with a 15.55% CAGR growth in Operating Profits

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 34.47
The company has been able to generate a Return on Capital Employed (avg) of 20.03% signifying high profitability per unit of total capital (equity and debt)

With a growth in Net Profit of 76.47%, the company declared Outstanding results in Dec 25

ROCE(HY) Highest at 19.99%
INTEREST COVERAGE RATIO(Q) Highest at 10,078.97
RAW MATERIAL COST(Y) Fallen by -8.72% (YoY)

With ROE of 16.27%, it has a attractive valuation with a 1.35 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 163.01%, its profits have risen by 16.1% ; the PEG ratio of the company is 0.5

Consistent Returns over the last 3 years

Along with generating 163.01% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Nippon Dry-Chemical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Nippon Dry-Chemical Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Nippon Dry-Chemical Co., Ltd.

163.01%

7.80

42.62%

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)

6.94%

EBIT Growth (5y)

15.55%

EBIT to Interest (avg)

34.47

Debt to EBITDA (avg)

0.38

Net Debt to Equity (avg)

-0.19

Sales to Capital Employed (avg)

1.86

Tax Ratio

26.83%

Dividend Payout Ratio

11.85%

Pledged Shares

Institutional Holding

ROCE (avg)

20.02%

ROE (avg)

14.57%

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

1.35

EV to EBIT

4.84

EV to EBITDA

4.23

EV to Capital Employed

1.43

EV to Sales

0.53

PEG Ratio

0.52

Dividend Yield

ROCE (Latest)

29.49%

ROE (Latest)

16.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

Bullish

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

19What is working for the Company

ROCE(HY)

Highest at 19.99%

INTEREST COVERAGE RATIO(Q)

Highest at 10,078.97

RAW MATERIAL COST(Y)

Fallen by -8.72% (YoY

CASH AND EQV(HY)

Highest at JPY 20,385.8 MM

NET SALES(Q)

At JPY 16,405.59 MM has Grown at 18.52%

OPERATING PROFIT(Q)

Highest at JPY 2,798.02 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.06 %

PRE-TAX PROFIT(Q)

Highest at JPY 2,734.08 MM

NET PROFIT(Q)

Highest at JPY 1,896.8 MM

EPS(Q)

Highest at JPY 286.1

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Nippon Dry-Chemical Co., Ltd.

Interest Coverage Ratio

Highest at 10,078.97

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

At JPY 16,405.59 MM has Grown at 18.52%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 2,798.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 17.06 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 2,734.08 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 2,734.08 MM has Grown at 65.45%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,896.8 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 1,896.8 MM has Grown at 67.73%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 286.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 20,385.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -8.72% (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