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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

DMW Corp.

Nippon Dry-Chemical Co., Ltd.

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Kimura Chemical Plants Co., Ltd.

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PEGASUS Co., Ltd.

Koike Sanso Kogyo Co., Ltd.

Takisawa Machine Tool Co., Ltd.

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)

Positive results in Jun 25

ROCE(HY) Highest at 17.09%
RAW MATERIAL COST(Y) Fallen by -5.64% (YoY)
NET PROFIT(9M) Higher at JPY 3,472.13 MM

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 139.13%, 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 139.13% 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.

139.13%

6.65

40.14%

Japan Nikkei 225

28.54%

1.11

25.75%

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)

1.87

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

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

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

8What is working for the Company

ROCE(HY)

Highest at 17.09%

RAW MATERIAL COST(Y)

Fallen by -5.64% (YoY

NET PROFIT(9M)

Higher at JPY 3,472.13 MM

CASH AND EQV(HY)

Highest at JPY 21,382.57 MM

DEBT-EQUITY RATIO (HY)

Lowest at -23.93 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.89%

NET SALES(Q)

At JPY 12,829.02 MM has Grown at 18.76%

-7What is not working for the Company

INTEREST(HY)

At JPY 73.21 MM has Grown at 13.45%

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

Net Sales

At JPY 12,829.02 MM has Grown at 18.76%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 21,382.57 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -23.93 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.89%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Profit

Higher at JPY 3,472.13 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Raw Material Cost

Fallen by -5.64% (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 Dry-Chemical Co., Ltd.

Interest

At JPY 73.21 MM has Grown at 13.45%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)