Nippon Kayaku Co., Ltd. (4272) 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

Sanyo Chemical Industries Ltd.

JCU Corp.

Mitsui Chemicals, Inc.

Mitsui & Co., Ltd.

Nippon Kayaku Co., Ltd.

Nippon Shokubai Co., Ltd.

Nippon Soda Co., Ltd.

Asahi Kasei Corp.

Kuraray Co., Ltd.

KH Neochem Co., Ltd.

Mitsubishi Chemical Group Corp.

Why is Nippon Kayaku Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Operating profit has grown by an annual rate 4.34% of over the last 5 years

Flat results in Mar 26

INTEREST(HY) At JPY 270 MM has Grown at 84.93%
DEBT-EQUITY RATIO (HY) Highest at -1.66 %
DEBTORS TURNOVER RATIO(HY) Lowest at 3.28 times

With ROE of 8.10%, it has a very attractive valuation with a 1.08 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 57.71%, its profits have risen by 25.9% ; the PEG ratio of the company is 0.5
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 57.71% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nippon Kayaku Co., Ltd. should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

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

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

Is Nippon Kayaku Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nippon Kayaku Co., Ltd.

57.71%

2.12

30.71%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.29%

EBIT Growth (5y)

4.34%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

0.69

Tax Ratio

20.12%

Dividend Payout Ratio

55.99%

Pledged Shares

Institutional Holding

0.12%

ROCE (avg)

7.72%

ROE (avg)

6.12%

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

1.08

EV to EBIT

15.76

EV to EBITDA

8.65

EV to Capital Employed

1.08

EV to Sales

1.28

PEG Ratio

0.45

Dividend Yield

ROCE (Latest)

6.86%

ROE (Latest)

8.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

11What is working for the Company

ROCE(HY)

Highest at 9.02%

NET SALES(Q)

Highest at JPY 67,253 MM

INTEREST COVERAGE RATIO(Q)

Highest at 22,986.67

OPERATING PROFIT(Q)

Highest at JPY 10,344 MM

NET PROFIT(Q)

Highest at JPY 7,812.26 MM

EPS(Q)

Highest at JPY 48.8

-10What is not working for the Company

INTEREST(HY)

At JPY 270 MM has Grown at 84.93%

DEBT-EQUITY RATIO (HY)

Highest at -1.66 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.28 times

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

Net Sales

Highest at JPY 67,253 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Interest Coverage Ratio

Highest at 22,986.67

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

At JPY 67,253 MM has Grown at 17.36%

over average net sales of the previous four periods of JPY 57,306.75 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 10,344 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Net Profit

Highest at JPY 7,812.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 48.8

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Depreciation

Highest at JPY 4,212 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 Kayaku Co., Ltd.

Interest

At JPY 270 MM has Grown at 84.93%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -1.66 %

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

Debtors Turnover Ratio

Lowest at 3.28 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio