ScoreWhy is Nippon Gear Co., Ltd. ?
1
Poor Management Efficiency with a low ROE of 7.41%
- The company has been able to generate a Return on Equity (avg) of 7.41% signifying low profitability per unit of shareholders funds
2
Company has very low debt and has enough cash to service the debt requirements
3
Healthy long term growth as Operating profit has grown by an annual rate 29.95%
4
With a growth in Net Profit of 3.16%, the company declared Very Positive results in Dec 25
- INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
- RAW MATERIAL COST(Y) Fallen by -1.19% (YoY)
- CASH AND EQV(HY) Highest at JPY 10,210.97 MM
5
With ROE of 11.98%, it has a attractive valuation with a 0.58 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 199.02%, its profits have fallen by -0.9%
- At the current price, the company has a high dividend yield of 0.1
6
Market Beating performance in long term as well as near term
- Along with generating 199.02% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Nippon Gear Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nippon Gear Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Nippon Gear Co., Ltd.
199.02%
2.14
83.89%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.74%
EBIT Growth (5y)
29.95%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.37
Sales to Capital Employed (avg)
0.79
Tax Ratio
32.04%
Dividend Payout Ratio
7.35%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
16.36%
ROE (avg)
7.41%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
5
Industry P/E
Price to Book Value
0.58
EV to EBIT
1.22
EV to EBITDA
1.10
EV to Capital Employed
0.33
EV to Sales
0.27
PEG Ratio
NA
Dividend Yield
0.10%
ROCE (Latest)
26.74%
ROE (Latest)
11.98%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by -1.19% (YoY
CASH AND EQV(HY)
Highest at JPY 10,210.97 MM
OPERATING PROFIT(Q)
Highest at JPY 709.03 MM
OPERATING PROFIT MARGIN(Q)
Highest at 28.44 %
PRE-TAX PROFIT(Q)
Highest at JPY 665.35 MM
NET PROFIT(Q)
Highest at JPY 454.74 MM
-3What is not working for the Company
ROCE(HY)
Lowest at 11.6%
DEBT-EQUITY RATIO
(HY)
Highest at -36.21 %
Here's what is working for Nippon Gear Co., Ltd.
Operating Profit
Highest at JPY 709.03 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 28.44 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 665.35 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 454.74 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Cash and Eqv
Highest at JPY 10,210.97 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -1.19% (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 Gear Co., Ltd.
Debt-Equity Ratio
Highest at -36.21 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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