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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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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

With a growth in Net Profit of 125.28%, the company declared Outstanding results in Dec 25

INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
RAW MATERIAL COST(Y) Fallen by -27.61% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at 2 %

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 59.94%, 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, High Return

Absolute

Risk Adjusted

Volatility

Nippon Pigment Co., Ltd.

59.94%

2.43

32.09%

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)

-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)

1.34

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

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

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

24What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -27.61% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 2 %

OPERATING PROFIT(Q)

Highest at JPY 752.63 MM

OPERATING PROFIT MARGIN(Q)

Highest at 7.22 %

PRE-TAX PROFIT(Q)

Highest at JPY 670.38 MM

NET PROFIT(Q)

Highest at JPY 535.51 MM

EPS(Q)

Highest at JPY 341.19

-3What is not working for the Company

INTEREST(9M)

At JPY 84.88 MM has Grown at 14.27%

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

Pre-Tax Profit

At JPY 670.38 MM has Grown at 382.81%

over average net sales of the previous four periods of JPY 138.85 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 535.51 MM has Grown at 447.42%

over average net sales of the previous four periods of JPY 97.82 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Profit

Highest at JPY 752.63 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 7.22 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 670.38 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 535.51 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 341.19

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at 2 %

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 -27.61% (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 Pigment Co., Ltd.

Interest

At JPY 84.88 MM has Grown at 14.27%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)