Nippon Pigment Co., Ltd. (4119) 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

Daishin Chemical Co., Ltd.

Hatsuho Shouji Co., Ltd.

Green Earth Institute Co., Ltd.

Yasuhara Chemical Co., Ltd.

Somar Corp.

Nippon Pigment Co., Ltd.

Lonseal Corp.

Yuki Gosei Kogyo Co., Ltd.

Nippon Seiro Co., Ltd.

REFINVERSE Group, Inc.

Titan Kogyo, Ltd.

Why is Nippon Pigment Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.88%

The company has been able to generate a Return on Capital Employed (avg) of 2.88% signifying low profitability per unit of total capital (equity and debt)

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 5.18

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 5.18
The company has been able to generate a Return on Equity (avg) of 3.95% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -0.25% and Operating profit at -2.61% over the last 5 years

The company declared negative results in Mar'25 after positive results in Dec'24

NET PROFIT(HY) At JPY -37.76 MM has Grown at -107.27%
INTEREST(HY) At JPY 50.87 MM has Grown at 74.15%
ROCE(HY) Lowest at -6.8%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 10.93%, its profits have fallen by -39.8%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nippon Pigment Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

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

Is Nippon Pigment Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nippon Pigment Co., Ltd.

10.93%

0.71

27.06%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.25%

EBIT Growth (5y)

-2.61%

EBIT to Interest (avg)

4.72

Debt to EBITDA (avg)

1.87

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

1.32

Tax Ratio

1.81%

Dividend Payout Ratio

3.12%

Pledged Shares

Institutional Holding

ROCE (avg)

2.68%

ROE (avg)

3.95%

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

0.27

EV to EBIT

19.12

EV to EBITDA

5.98

EV to Capital Employed

0.35

EV to Sales

0.20

PEG Ratio

Dividend Yield

ROCE (Latest)

1.81%

ROE (Latest)

2.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

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

10What is working for the Company

NET SALES(HY)

At JPY 20,442.75 MM has Grown at 60.9%

RAW MATERIAL COST(Y)

Fallen by -11.86% (YoY

PRE-TAX PROFIT(Q)

At JPY 120.37 MM has Grown at 84.06%

NET PROFIT(Q)

At JPY 109.37 MM has Grown at 93.18%

-18What is not working for the Company

NET PROFIT(HY)

At JPY -37.76 MM has Grown at -107.27%

INTEREST(HY)

At JPY 50.87 MM has Grown at 74.15%

ROCE(HY)

Lowest at -6.8%

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

Net Sales

At JPY 20,442.75 MM has Grown at 60.9%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 120.37 MM has Grown at 84.06%

over average net sales of the previous four periods of JPY 65.4 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 109.37 MM has Grown at 93.18%

over average net sales of the previous four periods of JPY 56.61 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -11.86% (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

Depreciation

At JPY 169.75 MM has Grown at 477.34%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

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

Interest

At JPY 50.87 MM has Grown at 74.15%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)