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

Hakudo Co., Ltd.

Daiki Aluminium Industry Co., Ltd.

UACJ Corp.

Nippon Light Metal Holdings 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 Dec 25

INTEREST COVERAGE RATIO(Q) Lowest at 1,926.09
INTEREST(Q) Highest at JPY 621 MM

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 63.87%, 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 63.87% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 36.73%

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.

63.87%

1.43

31.62%

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)

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)

1.37

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

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

10What is working for the Company

ROCE(HY)

Highest at 6.09%

RAW MATERIAL COST(Y)

Fallen by 0.77% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 55.72 %

NET SALES(Q)

Highest at JPY 148,392 MM

PRE-TAX PROFIT(Q)

Highest at JPY 9,650 MM

NET PROFIT(Q)

Highest at JPY 6,008 MM

EPS(Q)

Highest at JPY 97.54

-13What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,926.09

INTEREST(Q)

Highest at JPY 621 MM

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

Net Sales

Highest at JPY 148,392 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 9,650 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 9,650 MM has Grown at 69.86%

over average net sales of the previous four periods of JPY 5,681 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 6,008 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 6,008 MM has Grown at 75.02%

over average net sales of the previous four periods of JPY 3,432.73 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 97.54

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at 55.72 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by 0.77% (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 621 MM has Grown at 19.42%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,926.09

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 621 MM

in the last five periods and Increased by 19.42% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)