Nippon Kodoshi Corp. (3891) 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

Daio Paper Corp.

Nippon Kodoshi Corp.

Rengo Co., Ltd.

Tomoegawa Corp.

Nichiban Co., Ltd.

Nippon Filcon Co., Ltd.

Tokushu Tokai Paper Co., Ltd.

Hokuetsu Corp.

Nippon Paper Industries Co., Ltd.

Chuetsu Pulp & Paper Co., Ltd.

Mitsubishi Paper Mills Ltd.

Why is Nippon Kodoshi Corp. ?

High Management Efficiency with a high ROCE of 14.01%

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

Poor long term growth as Net Sales has grown by an annual rate of 4.13% over the last 5 years

With a growth in Net Profit of 18.33%, the company declared Very Positive results in Dec 25

The company has declared positive results in Jan 70 after 11 consecutive negative quarters
ROCE(HY) Highest at 9.15%
INTEREST COVERAGE RATIO(Q) Highest at 10,315.38
RAW MATERIAL COST(Y) Fallen by -38.7% (YoY)

With ROCE of 8.77%, it has a very attractive valuation with a 0.83 Enterprise value to Capital Employed

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 99.19%, its profits have risen by 20.8% ; the PEG ratio of the company is 0.5

Market Beating performance in long term as well as near term

Along with generating 99.19% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nippon Kodoshi Corp. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

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

Is Nippon Kodoshi Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Nippon Kodoshi Corp.

99.19%

1.60

42.08%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.13%

EBIT Growth (5y)

19.85%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.55

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

0.50

Tax Ratio

26.93%

Dividend Payout Ratio

35.81%

Pledged Shares

Institutional Holding

ROCE (avg)

14.01%

ROE (avg)

10.59%

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

0.81

EV to EBIT

9.52

EV to EBITDA

6.71

EV to Capital Employed

0.83

EV to Sales

1.46

PEG Ratio

0.52

Dividend Yield

ROCE (Latest)

8.77%

ROE (Latest)

7.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

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

13What is working for the Company

ROCE(HY)

Highest at 9.15%

INTEREST COVERAGE RATIO(Q)

Highest at 10,315.38

RAW MATERIAL COST(Y)

Fallen by -38.7% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 14.94 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.63 times

PRE-TAX PROFIT(Q)

Highest at JPY 1,016.8 MM

NET PROFIT(Q)

Highest at JPY 764.16 MM

EPS(Q)

Highest at JPY 72.45

-8What is not working for the Company

INTEREST(HY)

At JPY 25.77 MM has Grown at 28.35%

Here's what is working for Nippon Kodoshi Corp.

Interest Coverage Ratio

Highest at 10,315.38

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

Highest at JPY 1,016.8 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 1,016.8 MM has Grown at 58.37%

over average net sales of the previous four periods of JPY 642.03 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 764.16 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 764.16 MM has Grown at 65.99%

over average net sales of the previous four periods of JPY 460.36 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 72.45

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at 14.94 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.63 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -38.7% (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 Kodoshi Corp.

Interest

At JPY 25.77 MM has Grown at 28.35%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)