NIPPON KANZAI Holdings Co., Ltd. (9728) 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

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NIPPON KANZAI Holdings Co., Ltd.

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Why is NIPPON KANZAI Holdings Co., Ltd. ?

Weak Long Term Fundamental Strength with a 5.60% CAGR growth in Net Sales over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 5.60% over the last 5 years

Flat results in Jun 26

INTEREST(Q) At JPY 30 MM has Grown at 100%
INVENTORY TURNOVER RATIO(HY) Lowest at 18.41 times

With ROE of 8.06%, it has a expensive valuation with a 1.52 Price to Book Value

Over the past year, while the stock has generated a return of -3.10%, its profits have risen by 3% ; the PEG ratio of the company is 7.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.10% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

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 Realty)

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

Is NIPPON KANZAI Holdings Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

NIPPON KANZAI Holdings Co., Ltd.

-2.58%

0.42

15.36%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.60%

EBIT Growth (5y)

4.83%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

29.12%

Dividend Payout Ratio

29.08%

Pledged Shares

Institutional Holding

ROCE (avg)

23.24%

ROE (avg)

9.67%

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

1.52

EV to EBIT

9.17

EV to EBITDA

7.66

EV to Capital Employed

1.90

EV to Sales

0.57

PEG Ratio

7.20

Dividend Yield

ROCE (Latest)

20.71%

ROE (Latest)

8.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -4.28% (YoY

CASH AND EQV(HY)

Highest at JPY 73,057 MM

OPERATING PROFIT(Q)

Highest at JPY 3,659 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.53 %

PRE-TAX PROFIT(Q)

Highest at JPY 3,271 MM

NET PROFIT(Q)

Highest at JPY 2,341.52 MM

EPS(Q)

Highest at JPY 64.4

-13What is not working for the Company

INTEREST(Q)

At JPY 30 MM has Grown at 100%

INVENTORY TURNOVER RATIO(HY)

Lowest at 18.41 times

Here's what is working for NIPPON KANZAI Holdings Co., Ltd.

Operating Profit

Highest at JPY 3,659 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 9.53 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 3,271 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 2,341.52 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 64.4

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 73,057 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -4.28% (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 KANZAI Holdings Co., Ltd.

Interest

At JPY 30 MM has Grown at 100%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 18.41 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio