NIPPON RIETEC CO., LTD. (1938) 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

ASAHI KOGYOSHA CO., LTD.

DAI-DAN Co., Ltd.

TANSEISHA Co., Ltd.

Wakachiku Construction Co., Ltd.

Kawada Technologies, Inc.

NIPPON RIETEC CO., LTD.

Tokyo Energy & Systems, Inc.

Fukuda Corp.

Daiichi Kensetsu Corp.

P.S. Mitsubishi Construction Co., Ltd.

Fuji Furukawa Engineering & Construction Co. Ltd.

Why is NIPPON RIETEC CO., LTD. ?

Poor Management Efficiency with a low ROE of 5.18%

The company has been able to generate a Return on Equity (avg) of 5.18% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 5.55% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 5.18% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.88% and Operating profit at 5.55% over the last 5 years

Flat results in Mar 26

INTEREST(Q) Highest at JPY 42.72 MM

With ROE of 8.63%, it has a very attractive valuation with a 1.06 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 20.11%, its profits have risen by 44.5% ; the PEG ratio of the company is 0.3

Underperformed the market in the last 1 year

The stock has generated a return of 20.11% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to NIPPON RIETEC CO., LTD. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is NIPPON RIETEC CO., LTD. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

NIPPON RIETEC CO., LTD.

20.11%

3.27

34.15%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.88%

EBIT Growth (5y)

5.55%

EBIT to Interest (avg)

54.47

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

0.99

Tax Ratio

26.12%

Dividend Payout Ratio

36.59%

Pledged Shares

Institutional Holding

ROCE (avg)

7.84%

ROE (avg)

5.18%

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

1.06

EV to EBIT

10.90

EV to EBITDA

8.90

EV to Capital Employed

1.05

EV to Sales

1.00

PEG Ratio

0.28

Dividend Yield

ROCE (Latest)

9.68%

ROE (Latest)

8.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

9What is working for the Company

ROCE(HY)

Highest at 8.35%

DIVIDEND PAYOUT RATIO(Y)

Highest at 67.61%

RAW MATERIAL COST(Y)

Fallen by -8.76% (YoY

NET PROFIT(9M)

Higher at JPY 5,589.49 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 1.59

NET SALES(Q)

Highest at JPY 25,556.09 MM

OPERATING PROFIT(Q)

Highest at JPY 4,140.77 MM

OPERATING PROFIT MARGIN(Q)

Highest at 16.2 %

-11What is not working for the Company

INTEREST(Q)

Highest at JPY 42.72 MM

Here's what is working for NIPPON RIETEC CO., LTD.

Net Sales

Highest at JPY 25,556.09 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 4,140.77 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 16.2 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Dividend per share

Highest at JPY 1.59

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Profit

Higher at JPY 5,589.49 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Dividend Payout Ratio

Highest at 67.61%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -8.76% (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

Highest at JPY 398.95 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 RIETEC CO., LTD.

Interest

At JPY 42.72 MM has Grown at 23.32%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 42.72 MM

in the last five periods and Increased by 23.32% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)