Why is Nippon Gas Co., Ltd. (8174) ?
1
High Management Efficiency with a high ROCE of 16.63%
2
Healthy long term growth as Net Sales has grown by an annual rate of 8.42%
3
Positive results in Mar 26
- OPERATING CASH FLOW(Y) Highest at JPY 28,188 MM
- ROCE(HY) Highest at 22.04%
- DIVIDEND PER SHARE(HY) Highest at JPY 7.94
4
With ROCE of 23.42%, it has a very attractive valuation with a 4.18 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 6.29%, its profits have risen by 14% ; the PEG ratio of the company is 1.9
- At the current price, the company has a high dividend yield of 0
How much should you buy?
- Overall Portfolio exposure to Nippon Gas Co., Ltd. (8174) should be less than 10%
- Overall Portfolio exposure to Gas should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gas)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nippon Gas Co., Ltd. (8174) for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Nippon Gas Co., Ltd. (8174)
6.29%
0.78
22.86%
Japan Nikkei 225
85.83%
3.09
27.80%
Quality key factors
Factor
Value
Sales Growth (5y)
8.42%
EBIT Growth (5y)
16.91%
EBIT to Interest (avg)
93.87
Debt to EBITDA (avg)
0.85
Net Debt to Equity (avg)
0.31
Sales to Capital Employed (avg)
1.88
Tax Ratio
31.34%
Dividend Payout Ratio
88.55%
Pledged Shares
0
Institutional Holding
0.29%
ROCE (avg)
16.63%
ROE (avg)
15.44%
Valuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
Price to Book Value
5.60
EV to EBIT
17.87
EV to EBITDA
11.83
EV to Capital Employed
4.18
EV to Sales
1.85
PEG Ratio
1.85
Dividend Yield
NA
ROCE (Latest)
23.42%
ROE (Latest)
21.59%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Movement
12What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 28,188 MM
ROCE(HY)
Highest at 22.04%
DIVIDEND PER SHARE(HY)
Highest at JPY 7.94
CASH AND EQV(HY)
Highest at JPY 40,985 MM
NET SALES(Q)
Highest at JPY 66,521 MM
PRE-TAX PROFIT(Q)
Highest at JPY 10,115 MM
NET PROFIT(Q)
Highest at JPY 7,196.85 MM
EPS(Q)
Highest at JPY 66.62
-11What is not working for the Company
INTEREST(Q)
Highest at JPY 112 MM
Here's what is working for Nippon Gas Co., Ltd. (8174)
Operating Cash Flow
Highest at JPY 28,188 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Dividend per share
Highest at JPY 7.94 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Net Sales
Highest at JPY 66,521 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Pre-Tax Profit
Highest at JPY 10,115 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 7,196.85 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 66.62
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Cash and Eqv
Highest at JPY 40,985 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Nippon Gas Co., Ltd. (8174)
Interest
At JPY 112 MM has Grown at 38.27%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 112 MM
in the last five periods and Increased by 38.27% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






