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

Mitsui Chemicals, Inc.

Sanyo Chemical Industries Ltd.

Mitsui & Co., Ltd.

Nippon Shokubai Co., Ltd.

Nippon Soda Co., Ltd.

KH Neochem Co., Ltd.

Nippon Kayaku Co., Ltd.

JCU Corp.

Asahi Kasei Corp.

Kuraray Co., Ltd.

Mitsubishi Chemical Group Corp.

Why is Nippon Kayaku Co., Ltd. ?

Poor Management Efficiency with a low ROE of 6.12%

The company has been able to generate a Return on Equity (avg) of 6.12% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 4.34% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 6.12% signifying low profitability per unit of shareholders funds

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

Flat results in Jun 26

DEBT-EQUITY RATIO (HY) Highest at 5.58 %
INTEREST COVERAGE RATIO(Q) Lowest at 2,892.7
INTEREST(Q) Highest at JPY 233 MM

With ROE of 8.10%, it has a very attractive valuation with a 1.14 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 50.95%, 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

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, Medium Return

Absolute

Risk Adjusted

Volatility

Nippon Kayaku Co., Ltd.

50.46%

2.11

30.95%

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)

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)

0.70

Tax Ratio

26.43%

Dividend Payout Ratio

40.95%

Pledged Shares

Institutional Holding

0.12%

ROCE (avg)

7.83%

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

1.14

EV to EBIT

16.63

EV to EBITDA

9.13

EV to Capital Employed

1.14

EV to Sales

1.35

PEG Ratio

0.47

Dividend Yield

ROCE (Latest)

6.86%

ROE (Latest)

8.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

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

8What is working for the Company

ROCE(HY)

Highest at 9.72%

NET SALES(Q)

Highest at JPY 67,402 MM

RAW MATERIAL COST(Y)

Fallen by -2.67% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.81 times

-17What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 5.58 %

INTEREST COVERAGE RATIO(Q)

Lowest at 2,892.7

INTEREST(Q)

Highest at JPY 233 MM

OPERATING PROFIT(Q)

Lowest at JPY 6,740 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10 %

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

Net Sales

Highest at JPY 67,402 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Debtors Turnover Ratio

Highest at 3.81 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -2.67% (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 Kayaku Co., Ltd.

Interest

At JPY 233 MM has Grown at 417.78%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,892.7

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 5.58 % and Grown

In each half year 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

Interest

Highest at JPY 233 MM

in the last five periods and Increased by 417.78% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 6,740 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 10 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales