Nippon Filcon Co., Ltd. (5942) 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

Nippon Kodoshi Corp.

Tokushu Tokai Paper Co., Ltd.

Nippon Filcon Co., Ltd.

Rengo Co., Ltd.

Daio Paper Corp.

Mitsubishi Paper Mills Ltd.

Tomoegawa Corp.

Nichiban Co., Ltd.

Hokuetsu Corp.

Nippon Paper Industries Co., Ltd.

Chuetsu Pulp & Paper Co., Ltd.

Why is Nippon Filcon Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.69%

The company has been able to generate a Return on Capital Employed (avg) of 2.69% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.94 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.94 times
The company has been able to generate a Return on Equity (avg) of 5.39% signifying low profitability per unit of shareholders funds

Negative results in May 25

NET PROFIT(HY) At JPY 292.11 MM has Grown at -52.29%
ROCE(HY) Lowest at 1.59%
DEBT-EQUITY RATIO (HY) Highest at 28.5 %

With ROCE of 2.66%, it has a very attractive valuation with a 0.60 Enterprise value to Capital Employed

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 3.59%, its profits have fallen by -33.3%
At the current price, the company has a high dividend yield of 0.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nippon Filcon Co., Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

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

Is Nippon Filcon Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nippon Filcon Co., Ltd.

3.59%

-0.06

15.26%

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)

3.20%

EBIT Growth (5y)

11.39%

EBIT to Interest (avg)

8.71

Debt to EBITDA (avg)

2.63

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

0.84

Tax Ratio

39.44%

Dividend Payout Ratio

88.46%

Pledged Shares

Institutional Holding

ROCE (avg)

2.80%

ROE (avg)

5.39%

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

0.48

EV to EBIT

22.63

EV to EBITDA

6.76

EV to Capital Employed

0.60

EV to Sales

0.62

PEG Ratio

Dividend Yield

0.20%

ROCE (Latest)

2.66%

ROE (Latest)

4.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

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

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 92.77%

RAW MATERIAL COST(Y)

Fallen by -4.49% (YoY

CASH AND EQV(HY)

Highest at JPY 9,875.94 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 3.53

-20What is not working for the Company

NET PROFIT(HY)

At JPY 292.11 MM has Grown at -52.29%

ROCE(HY)

Lowest at 1.59%

DEBT-EQUITY RATIO (HY)

Highest at 28.5 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.53%

INTEREST(Q)

Highest at JPY 41.22 MM

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

Cash and Eqv

Highest at JPY 9,875.94 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 3.53

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 92.77%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -4.49% (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 Filcon Co., Ltd.

Net Profit

At JPY 292.11 MM has Grown at -52.29%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 41.22 MM has Grown at 42.64%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 41.22 MM

in the last five periods and Increased by 42.64% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 28.5 %

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 2.53%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio