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Nippon Gear Co., Ltd.

  • Market Cap: Micro Cap
  • Industry: Electronics & Appliances
  • ISIN: JP3698800004
JPY
824.00
-42 (-4.85%)

Dec 11

TKS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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
Kawaden Corp.
The Kodensha, Co., Ltd.
Onamba Co., Ltd.
Nippon Gear Co., Ltd.
Canare Electric Co., Ltd.
Mitsuboshi Co., Ltd.
Nippon Tungsten Co., Ltd.
Fuji Electric Industry Co., Ltd.
Otani Kogyo Co., Ltd.
Almedio, Inc.
Origin Co., Ltd.
Why 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
Flat results in Jun 25
  • INVENTORY TURNOVER RATIO(HY) Lowest at 2.24%
  • NET SALES(Q) Lowest at JPY 2,069.18 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 76.07%, 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
  • The stock has generated a return of 76.07% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%
stock-recommendationReal-Time Research Report
Verdict Report
How much should you hold?
  1. Overall Portfolio exposure to Nippon Gear Co., Ltd. should be less than 10%
  2. 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.
76.07%
1.12
45.80%
Japan Nikkei 225
28.54%
1.11
25.75%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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%
stock-recommendationValuation
Valuation Scorecard stock-summary
stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary
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%
stock-recommendationTechnicals
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend
Financial Trend Scorecard stock-summary
stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company
RAW MATERIAL COST(Y)

Fallen by -8.28% (YoY

CASH AND EQV(HY)

Highest at JPY 9,601.24 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.99%

-3What is not working for the Company
INVENTORY TURNOVER RATIO(HY)

Lowest at 2.24%

NET SALES(Q)

Lowest at JPY 2,069.18 MM

Here's what is working for Nippon Gear Co., Ltd.
Cash and Eqv
Highest at JPY 9,601.24 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio
Highest at 2.99%
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost
Fallen by -8.28% (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.
Inventory Turnover Ratio
Lowest at 2.24% and Fallen
In each half year in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales
Lowest at JPY 2,069.18 MM
in the last five periods
MOJO Watch
Near term sales trend is negative

Net Sales (JPY MM)

Non Operating Income
Highest at JPY 0.05 MM
in the last five periods
MOJO Watch
Increased income from non business activities may not be sustainable

Non Operating income

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