Nippon Hume Corp. (5262) 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

ASIA PILE HOLDINGS Corp.

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Mitsui Matsushima Holdings Co., Ltd.

TYK Corp.

Sumitomo Osaka Cement Co., Ltd.

Nippon Hume Corp.

Nippon Concrete Industries Co., Ltd.

Taiheiyo Cement Corp.

Why is Nippon Hume Corp. ?

Poor long term growth as Net Sales has grown by an annual rate of 1.12% and Operating profit at 2.22% over the last 5 years

The company has declared negative results in Mar'2025 after 3 consecutive positive quarters

INTEREST(Q) At JPY 2.76 MM has Grown at 50.52%
CASH AND EQV(HY) Lowest at JPY 16,839.28 MM
DEBT-EQUITY RATIO (HY) Highest at -6.67 %

With ROE of 7.63%, it has a very attractive valuation with a 1.39 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 14.03%, its profits have risen by 63.9% ; the PEG ratio of the company is 0.3
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 14.03% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Nippon Hume Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nippon Hume Corp.

14.03%

0.09

81.23%

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)

1.12%

EBIT Growth (5y)

2.22%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

0.82

Tax Ratio

20.37%

Dividend Payout Ratio

29.25%

Pledged Shares

Institutional Holding

ROCE (avg)

5.83%

ROE (avg)

5.74%

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

1.39

EV to EBIT

23.49

EV to EBITDA

17.11

EV to Capital Employed

1.55

EV to Sales

1.28

PEG Ratio

0.29

Dividend Yield

0.02%

ROCE (Latest)

6.58%

ROE (Latest)

7.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.25% (YoY

NET SALES(Q)

Highest at JPY 10,834.88 MM

OPERATING PROFIT(Q)

Highest at JPY 940.23 MM

-9What is not working for the Company

INTEREST(Q)

At JPY 2.76 MM has Grown at 50.52%

CASH AND EQV(HY)

Lowest at JPY 16,839.28 MM

DEBT-EQUITY RATIO (HY)

Highest at -6.67 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.93 times

Here's what is working for Nippon Hume Corp.

Net Sales

Highest at JPY 10,834.88 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 940.23 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Raw Material Cost

Fallen by 1.25% (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

Depreciation

Highest at JPY 217.21 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Nippon Hume Corp.

Interest

At JPY 2.76 MM has Grown at 50.52%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 16,839.28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -6.67 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 5.93 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio