ScoreWhy is Nippon Information Development Co., Ltd. ?
1
High Management Efficiency with a high ROE of 10.82%
2
Company has very low debt and has enough cash to service the debt requirements
3
Poor long term growth as Net Sales has grown by an annual rate of 6.74% and Operating profit at 9.70% over the last 5 years
4
Flat results in Jun 25
- INTEREST(HY) At JPY 0.72 MM has Grown at 13.41%
- ROCE(HY) Lowest at 11.25%
- INTEREST COVERAGE RATIO(Q) Lowest at 178,492.19
5
With ROE of 11.22%, it has a attractive valuation with a 1.44 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 -6.69%, its profits have risen by 14.8% ; the PEG ratio of the company is 0.9
6
Below par performance in long term as well as near term
- Along with generating -6.69% returns in the last 1 year, the stock has also underperformed 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 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.
-6.69%
0.07
21.52%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.74%
EBIT Growth (5y)
9.70%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.75
Sales to Capital Employed (avg)
1.15
Tax Ratio
29.07%
Dividend Payout Ratio
12.92%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
51.75%
ROE (avg)
10.82%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
1.44
EV to EBIT
4.81
EV to EBITDA
4.57
EV to Capital Employed
2.78
EV to Sales
0.59
PEG Ratio
0.87
Dividend Yield
NA
ROCE (Latest)
57.73%
ROE (Latest)
11.22%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 0.92% (YoY
CASH AND EQV(HY)
Highest at JPY 33,197.82 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -76.65 %
INVENTORY TURNOVER RATIO(HY)
Highest at 43.22%
DEBTORS TURNOVER RATIO(HY)
Highest at 7.93%
-14What is not working for the Company
INTEREST(HY)
At JPY 0.72 MM has Grown at 13.41%
ROCE(HY)
Lowest at 11.25%
INTEREST COVERAGE RATIO(Q)
Lowest at 178,492.19
OPERATING PROFIT(Q)
Lowest at JPY 594.38 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 9.88 %
PRE-TAX PROFIT(Q)
Lowest at JPY 623.79 MM
NET PROFIT(Q)
Lowest at JPY 421.73 MM
EPS(Q)
Lowest at JPY 38.6
Here's what is working for Nippon Information Development Co., Ltd.
Cash and Eqv
Highest at JPY 33,197.82 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -76.65 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 43.22%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 7.93%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by 0.92% (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.
Interest
At JPY 0.72 MM has Grown at 13.41%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 178,492.19
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at JPY 594.38 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 9.88 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 623.79 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 421.73 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 38.6
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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