Nippon Light Metal Holdings Co., Ltd. (5703) 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

Daiki Aluminium Industry Co., Ltd.

UACJ Corp.

Hakudo Co., Ltd.

Nippon Light Metal Holdings Co., Ltd.

Sankyo Tateyama, Inc.

Why is Nippon Light Metal Holdings Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 5.96% and Operating profit at 2.37% over the last 5 years
The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 5.96% and Operating profit at 2.37% over the last 5 years

With a growth in Net Profit of 49.91%, the company declared Very Positive results in Jun 26

ROCE(HY) Highest at 8.1%
NET SALES(Q) Highest at JPY 166,331 MM
INTEREST COVERAGE RATIO(Q) Highest at 2,435.15

With ROCE of 6.60%, it has a expensive valuation with a 0.85 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 62.93%, its profits have risen by 10.4% ; the PEG ratio of the company is 1.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nippon Light Metal Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Non - Ferrous Metals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Non - Ferrous Metals)

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

Is Nippon Light Metal Holdings Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Nippon Light Metal Holdings Co., Ltd.

62.96%

1.79

34.30%

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)

5.96%

EBIT Growth (5y)

2.37%

EBIT to Interest (avg)

12.55

Debt to EBITDA (avg)

3.29

Net Debt to Equity (avg)

0.58

Sales to Capital Employed (avg)

1.37

Tax Ratio

32.81%

Dividend Payout Ratio

31.59%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

5.44%

ROE (avg)

6.82%

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

0.77

EV to EBIT

12.93

EV to EBITDA

7.02

EV to Capital Employed

0.85

EV to Sales

0.56

PEG Ratio

1.06

Dividend Yield

ROCE (Latest)

6.60%

ROE (Latest)

7.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

21What is working for the Company

ROCE(HY)

Highest at 8.1%

NET SALES(Q)

Highest at JPY 166,331 MM

INTEREST COVERAGE RATIO(Q)

Highest at 2,435.15

OPERATING PROFIT(Q)

Highest at JPY 15,658 MM

RAW MATERIAL COST(Y)

Fallen by -7.51% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 53.61 %

DEBTORS TURNOVER RATIO(HY)

Highest at 4.35 times

OPERATING PROFIT MARGIN(Q)

Highest at 9.41 %

PRE-TAX PROFIT(Q)

Highest at JPY 9,919 MM

NET PROFIT(Q)

Highest at JPY 6,163 MM

EPS(Q)

Highest at JPY 100.05

-8What is not working for the Company

INTEREST(HY)

At JPY 1,282 MM has Grown at 21.06%

Here's what is working for Nippon Light Metal Holdings Co., Ltd.

Net Sales

Highest at JPY 166,331 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 2,435.15

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at JPY 15,658 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (JPY MM)

Net Sales

At JPY 166,331 MM has Grown at 13.64%

over average net sales of the previous four periods of JPY 146,368.25 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit Margin

Highest at 9.41 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 9,919 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 6,163 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 100.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at 53.61 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 4.35 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 -7.51% (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 Light Metal Holdings Co., Ltd.

Interest

At JPY 1,282 MM has Grown at 21.06%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)