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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hakudo Co., Ltd.

Nippon Light Metal Holdings Co., Ltd.

UACJ Corp.

Daiki Aluminium Industry Co., Ltd.

Sankyo Tateyama, Inc.

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

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 3.38% and Operating profit at -2.44% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 3.38% and Operating profit at -2.44% over the last 5 years

Flat results in Jun 25

INTEREST(9M) At JPY 1,565 MM has Grown at 50.92%
INTEREST COVERAGE RATIO(Q) Lowest at 2,027.87
NET PROFIT(Q) At JPY 2,123 MM has Fallen at -35.01%

With ROCE of 5.92%, it has a very attractive valuation with a 0.64 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 65.57%, its profits have risen by 21.8% ; the PEG ratio of the company is 0.3

Market Beating Performance

The stock has generated a return of 65.57% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%

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.

62.24%

1.52

24.94%

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)

3.38%

EBIT Growth (5y)

-2.44%

EBIT to Interest (avg)

14.99

Debt to EBITDA (avg)

3.11

Net Debt to Equity (avg)

0.58

Sales to Capital Employed (avg)

1.38

Tax Ratio

31.74%

Dividend Payout Ratio

35.00%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

5.85%

ROE (avg)

6.73%

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

0.43

EV to EBIT

10.78

EV to EBITDA

5.46

EV to Capital Employed

0.64

EV to Sales

0.43

PEG Ratio

0.32

Dividend Yield

ROCE (Latest)

5.92%

ROE (Latest)

6.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.74% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.44%

DEBTORS TURNOVER RATIO(HY)

Highest at 3.87%

-13What is not working for the Company

INTEREST(9M)

At JPY 1,565 MM has Grown at 50.92%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,027.87

NET PROFIT(Q)

At JPY 2,123 MM has Fallen at -35.01%

EPS(Q)

Lowest at JPY 34.51

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

Inventory Turnover Ratio

Highest at 4.44%

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 3.87%

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 0.74% (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 1,059 MM has Grown at 48.74%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,027.87

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

Lowest at JPY 2,123 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

At JPY 2,123 MM has Fallen at -35.01%

over average net sales of the previous four periods of JPY 3,266.48 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 34.51

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)