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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Capital Asset Planning, Inc.

Science Arts, Inc.

Brains Technology, Inc.

WITZ Corp.

System Integrator Corp.

Softmax Co., Ltd. (Japan)

Genetec Corp.

Appirits Inc.

Nippon RAD Inc.

CyberStep, Inc.

iRidge, Inc.

Why is Nippon RAD Inc. ?

Poor Management Efficiency with a low ROE of 6.17%

The company has been able to generate a Return on Equity (avg) of 6.17% signifying low profitability per unit of shareholders funds

Company has very low debt and has enough cash to service the debt requirements

Low Debt Company with Strong Long Term Fundamental Strength

Negative results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 392,945.45
RAW MATERIAL COST(Y) Grown by 17.15% (YoY)
OPERATING PROFIT(Q) Lowest at JPY 43.22 MM

With ROE of 12.39%, it has a expensive valuation with a 1.31 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 -3.25%, its profits have risen by 28% ; the PEG ratio of the company is 0.4

Below par performance in long term as well as near term

Along with generating -3.25% 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 hold?

Overall Portfolio exposure to Nippon RAD Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is Nippon RAD Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nippon RAD Inc.

-3.25%

-0.29

61.20%

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)

4.94%

EBIT Growth (5y)

26.85%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.64

Sales to Capital Employed (avg)

1.33

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

12.65%

Pledged Shares

Institutional Holding

ROCE (avg)

30.38%

ROE (avg)

6.17%

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

1.31

EV to EBIT

6.62

EV to EBITDA

5.47

EV to Capital Employed

1.87

EV to Sales

0.52

PEG Ratio

0.38

Dividend Yield

ROCE (Latest)

28.26%

ROE (Latest)

12.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

OPERATING CASH FLOW(Y)

Highest at JPY 361.23 MM

NET PROFIT(HY)

Higher at JPY 314.03 MM

ROCE(HY)

Highest at 11.97%

INVENTORY TURNOVER RATIO(HY)

Highest at 41.38%

DEBTORS TURNOVER RATIO(HY)

Highest at 7.1%

-6What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 392,945.45

RAW MATERIAL COST(Y)

Grown by 17.15% (YoY

OPERATING PROFIT(Q)

Lowest at JPY 43.22 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.55 %

NET PROFIT(Q)

Fallen at -39.44%

Here's what is working for Nippon RAD Inc.

Operating Cash Flow

Highest at JPY 361.23 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Inventory Turnover Ratio

Highest at 41.38%

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 7.1%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Interest Coverage Ratio

Lowest at 392,945.45

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 43.22 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 4.55 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Fallen at -39.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Raw Material Cost

Grown by 17.15% (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

Non Operating Income

Highest at JPY 0.72 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income