Nippon Fine Chemical Co., Ltd. (4362) 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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Nippon Fine Chemical Co., Ltd.

Nippon Kayaku Co., Ltd.

Mitsubishi Chemical Group Corp.

Why is Nippon Fine Chemical Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Flat results in Dec 25

NET SALES(Q) Lowest at JPY 7,383.45 MM
OPERATING PROFIT(Q) Lowest at JPY 1,230.79 MM
PRE-TAX PROFIT(Q) Lowest at JPY 1,325.29 MM

With ROE of 8.31%, it has a very attractive valuation with a 1.19 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 18.26%, its profits have risen by 5.6% ; the PEG ratio of the company is 2.6
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 18.26% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nippon Fine Chemical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

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

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

Is Nippon Fine Chemical Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nippon Fine Chemical Co., Ltd.

18.26%

-0.20

30.43%

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)

4.19%

EBIT Growth (5y)

5.84%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

0.73

Tax Ratio

26.24%

Dividend Payout Ratio

43.01%

Pledged Shares

Institutional Holding

ROCE (avg)

13.97%

ROE (avg)

8.26%

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

1.19

EV to EBIT

9.17

EV to EBITDA

7.14

EV to Capital Employed

1.27

EV to Sales

1.24

PEG Ratio

2.57

Dividend Yield

0.02%

ROCE (Latest)

13.83%

ROE (Latest)

8.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

5What is working for the Company

ROCE(HY)

Highest at 9.26%

RAW MATERIAL COST(Y)

Fallen by -1.61% (YoY

CASH AND EQV(HY)

Highest at JPY 27,648.81 MM

DEBT-EQUITY RATIO (HY)

Lowest at -29.18 %

-10What is not working for the Company

NET SALES(Q)

Lowest at JPY 7,383.45 MM

OPERATING PROFIT(Q)

Lowest at JPY 1,230.79 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 1,325.29 MM

NET PROFIT(Q)

Lowest at JPY 945.88 MM

EPS(Q)

Lowest at JPY 43.62

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

Cash and Eqv

Highest at JPY 27,648.81 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -29.18 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -1.61% (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 Fine Chemical Co., Ltd.

Net Sales

At JPY 7,383.45 MM has Fallen at -17.46%

over average net sales of the previous four periods of JPY 8,945.36 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Net Sales

Lowest at JPY 7,383.45 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 1,230.79 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 1,325.29 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 945.88 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 43.62

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Non Operating Income

Highest at JPY 0.35 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income