Nippon RAD Inc. (4736) 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

Science Arts, Inc.

Genetec Corp.

Capital Asset Planning, Inc.

WITZ Corp.

Softmax Co., Ltd. (Japan)

iRidge, Inc.

System Integrator Corp.

Brains Technology, Inc.

Appirits Inc.

Nippon RAD Inc.

CyberStep, Inc.

Why is Nippon RAD Inc. ?

Poor Management Efficiency with a low ROE of 6.18%

The company has been able to generate a Return on Equity (avg) of 6.18% signifying low profitability per unit of shareholders funds

With a fall in Net Sales of -13.95%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 3 consecutive quarters
INTEREST(HY) At JPY 0.09 MM has Grown at 234.62%
NET PROFIT(Q) At JPY 71.47 MM has Fallen at -73.17%
ROCE(HY) Lowest at 4.77%

With ROE of 10.46%, it has a very attractive valuation with a 0.91 Price to Book Value

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 -21.27%, its profits have risen by 28.6% ; the PEG ratio of the company is 0.3

Below par performance in long term as well as near term

Along with generating -21.27% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Nippon RAD Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nippon RAD Inc.

-100.0%

-0.73

30.57%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.01%

EBIT Growth (5y)

76.49%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.64

Sales to Capital Employed (avg)

1.32

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

12.65%

Pledged Shares

Institutional Holding

ROCE (avg)

30.38%

ROE (avg)

6.18%

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

0.91

EV to EBIT

4.59

EV to EBITDA

3.48

EV to Capital Employed

0.80

EV to Sales

0.28

PEG Ratio

0.31

Dividend Yield

ROCE (Latest)

17.46%

ROE (Latest)

10.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 76.92%

INVENTORY TURNOVER RATIO(HY)

Highest at 50.71 times

-32What is not working for the Company

INTEREST(HY)

At JPY 0.09 MM has Grown at 234.62%

NET PROFIT(Q)

At JPY 71.47 MM has Fallen at -73.17%

ROCE(HY)

Lowest at 4.77%

DEBT-EQUITY RATIO (HY)

Highest at -55 %

NET SALES(Q)

At JPY 1,114.5 MM has Fallen at -13.95%

PRE-TAX PROFIT(Q)

At JPY 68.62 MM has Fallen at -56.82%

RAW MATERIAL COST(Y)

Grown by 14.51% (YoY

CASH AND EQV(HY)

Lowest at JPY 3,941.75 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.86 times

Here's what is working for Nippon RAD Inc.

Inventory Turnover Ratio

Highest at 50.71 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 76.92%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at JPY 25.63 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Nippon RAD Inc.

Interest

At JPY 0.09 MM has Grown at 234.62%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 71.47 MM has Fallen at -73.17%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

At JPY 1,114.5 MM has Fallen at -13.95%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 68.62 MM has Fallen at -56.82%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Debt-Equity Ratio

Highest at -55 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Cash and Eqv

Lowest at JPY 3,941.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 3.86 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 14.51% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales