Nippon Information Development Co., Ltd. (2349) 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

ULS Group, Inc.

ID Holdings Corp.

System Research Co., Ltd.

Nippon Information Development Co., Ltd.

LAC Co., Ltd.

TerraSky Co., Ltd.

Core Corp.

Computer Institute of Japan, Ltd.

E-Guardian, Inc.

DIGITAL HEARTS HOLDINGS Co., Ltd.

Remixpoint, Inc.

Why is Nippon Information Development Co., Ltd. ?

Weak Long Term Fundamental Strength with a 8.19% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 7.51% and Operating profit at 8.19% over the last 5 years

Positive results in Mar 26

DIVIDEND PER SHARE(HY) Highest at JPY 6.25
RAW MATERIAL COST(Y) Fallen by -24.93% (YoY)
CASH AND EQV(HY) Highest at JPY 35,668.49 MM

With ROE of 10.13%, it has a fair valuation with a 1.29 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 7.31%, its profits have fallen by -1.6%

Underperformed the market in the last 1 year

The stock has generated a return of 7.31% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nippon Information Development Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Nippon Information Development Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nippon Information Development Co., Ltd.

-100.0%

0.34

21.99%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.51%

EBIT Growth (5y)

8.19%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.75

Sales to Capital Employed (avg)

1.14

Tax Ratio

29.62%

Dividend Payout Ratio

12.66%

Pledged Shares

Institutional Holding

ROCE (avg)

53.48%

ROE (avg)

10.82%

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

1.29

EV to EBIT

4.31

EV to EBITDA

4.08

EV to Capital Employed

2.08

EV to Sales

0.50

PEG Ratio

Dividend Yield

ROCE (Latest)

48.28%

ROE (Latest)

10.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Bullish

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

11What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 6.25

RAW MATERIAL COST(Y)

Fallen by -24.93% (YoY

CASH AND EQV(HY)

Highest at JPY 35,668.49 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 113.36 times

NET SALES(Q)

Highest at JPY 7,259.51 MM

OPERATING PROFIT(Q)

Highest at JPY 1,083.38 MM

OPERATING PROFIT MARGIN(Q)

Highest at 14.92 %

PRE-TAX PROFIT(Q)

Highest at JPY 1,068.45 MM

NET PROFIT(Q)

Highest at JPY 807.09 MM

EPS(Q)

Highest at JPY 71.13

-1What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 40.77%

Here's what is working for Nippon Information Development Co., Ltd.

Dividend per share

Highest at JPY 6.25 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 7,259.51 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 1,083.38 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 14.92 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 1,068.45 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 807.09 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 71.13

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 35,668.49 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 113.36 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -24.93% (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 Information Development Co., Ltd.

Dividend Payout Ratio

Lowest at 40.77%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)