ScoreWhy is Nippon Kayaku Co., Ltd. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Operating profit has grown by an annual rate 3.13% of over the last 5 years
- INTEREST COVERAGE RATIO(Q) Lowest at 4,312
- RAW MATERIAL COST(Y) Grown by 8.48% (YoY)
- DEBT-EQUITY RATIO (HY) Highest at -0.65 %
3
With ROE of 7.40%, it has a very attractive valuation with a 0.80 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 28.49%, its profits have risen by 110.1% ; the PEG ratio of the company is 0.1
- At the current price, the company has a high dividend yield of 0
4
Underperformed the market in the last 1 year
- The stock has generated a return of 28.49% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.94%
Real-Time Research ReportHow 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, Medium Return
Absolute
Risk Adjusted
Volatility
Nippon Kayaku Co., Ltd.
28.49%
2.26
21.27%
Japan Nikkei 225
38.94%
1.38
28.28%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.91%
EBIT Growth (5y)
3.13%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.07
Sales to Capital Employed (avg)
0.69
Tax Ratio
20.12%
Dividend Payout Ratio
55.99%
Pledged Shares
0
Institutional Holding
0.12%
ROCE (avg)
7.72%
ROE (avg)
6.12%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
0.80
EV to EBIT
9.65
EV to EBITDA
5.71
EV to Capital Employed
0.79
EV to Sales
0.88
PEG Ratio
0.09
Dividend Yield
0.04%
ROCE (Latest)
8.17%
ROE (Latest)
7.40%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
ROCE(HY)
Highest at 7.91%
CASH AND EQV(HY)
Highest at JPY 127,249 MM
NET SALES(Q)
Highest at JPY 61,023 MM
-15What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 4,312
RAW MATERIAL COST(Y)
Grown by 8.48% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -0.65 %
INTEREST(Q)
Highest at JPY 225 MM
Here's what is working for Nippon Kayaku Co., Ltd.
Net Sales
Highest at JPY 61,023 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Cash and Eqv
Highest at JPY 127,249 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Depreciation
Highest at JPY 3,999 MM
in the last five periodsMOJO 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 225 MM has Grown at 275%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 4,312
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 225 MM
in the last five periods and Increased by 275% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at -0.65 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 8.48% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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