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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

JCU Corp.

Sanyo Chemical Industries Ltd.

Mitsui & Co., Ltd.

Asahi Kasei Corp.

Nippon Shokubai Co., Ltd.

Nippon Kayaku Co., Ltd.

Mitsui Chemicals, Inc.

KH Neochem Co., Ltd.

Nippon Soda Co., Ltd.

Mitsubishi Chemical Group Corp.

Kuraray Co., Ltd.

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 3.13% of over the last 5 years

Flat results in Jun 25

INTEREST(Q) At JPY 142 MM has Grown at 425.93%
INTEREST COVERAGE RATIO(Q) Lowest at 5,614.08
RAW MATERIAL COST(Y) Grown by 5.92% (YoY)

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 29.60%, 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

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.

26.23%

1.29

27.45%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.91%

EBIT Growth (5y)

3.13%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

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

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

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%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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 6.81%

NET PROFIT(9M)

Higher at JPY 16,215.99 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.06%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.53%

-15What is not working for the Company

INTEREST(Q)

At JPY 142 MM has Grown at 425.93%

INTEREST COVERAGE RATIO(Q)

Lowest at 5,614.08

RAW MATERIAL COST(Y)

Grown by 5.92% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -5.08 %

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

Net Profit

At JPY 16,215.99 MM has Grown at 119.74%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 2.06%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.53%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Profit

Higher at JPY 16,215.99 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Here's what is not working for Nippon Kayaku Co., Ltd.

Interest

At JPY 142 MM has Grown at 425.93%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 5,614.08

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 142 MM

in the last five periods and Increased by 425.93% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -5.08 %

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

Raw Material Cost

Grown by 5.92% (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