Why is Nippon Gas Co., Ltd. (8174) ?
1
High Management Efficiency with a high ROCE of 17.08%
2
Healthy long term growth as Net Sales has grown by an annual rate of 8.59%
3
Negative results in Jun 25
- INTEREST(HY) At JPY 137 MM has Grown at 35.64%
4
With ROCE of 23.24%, it has a very attractive valuation with a 3.56 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 31.52%, its profits have fallen by -8.8%
- At the current price, the company has a high dividend yield of 0
5
Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks
How much should you hold?
- 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)
34.49%
0.87
21.37%
Japan Nikkei 225
38.59%
1.50
26.58%
Quality key factors
Factor
Value
Sales Growth (5y)
8.59%
EBIT Growth (5y)
19.70%
EBIT to Interest (avg)
93.87
Debt to EBITDA (avg)
0.85
Net Debt to Equity (avg)
0.31
Sales to Capital Employed (avg)
1.89
Tax Ratio
31.34%
Dividend Payout Ratio
88.55%
Pledged Shares
0
Institutional Holding
0.29%
ROCE (avg)
16.63%
ROE (avg)
15.37%
Valuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
Price to Book Value
4.35
EV to EBIT
15.31
EV to EBITDA
7.97
EV to Capital Employed
3.56
EV to Sales
1.57
PEG Ratio
NA
Dividend Yield
0.02%
ROCE (Latest)
23.24%
ROE (Latest)
17.04%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 24,725 MM
RAW MATERIAL COST(Y)
Fallen by 1.98% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 26.54%
PRE-TAX PROFIT(Q)
At JPY 3,663 MM has Grown at 69.98%
NET PROFIT(Q)
At JPY 2,631 MM has Grown at 81.07%
-8What is not working for the Company
INTEREST(HY)
At JPY 137 MM has Grown at 35.64%
Here's what is working for Nippon Gas Co., Ltd. (8174)
Operating Cash Flow
Highest at JPY 24,725 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Pre-Tax Profit
At JPY 3,663 MM has Grown at 69.98%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 2,631 MM has Grown at 81.07%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Inventory Turnover Ratio
Highest at 26.54%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 1.98% (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 Gas Co., Ltd. (8174)
Interest
At JPY 137 MM has Grown at 35.64%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






