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

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

DAI-DAN Co., Ltd.

Wakachiku Construction Co., Ltd.

TANSEISHA Co., Ltd.

P.S. Mitsubishi Construction Co., Ltd.

ASAHI KOGYOSHA CO., LTD.

Fuji Furukawa Engineering & Construction Co. Ltd.

Fukuda Corp.

Tokyo Energy & Systems, Inc.

Daiichi Kensetsu Corp.

NIPPON RIETEC CO., LTD.

Kawada Technologies, Inc.

Why is NIPPON RIETEC CO., LTD. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 58.23

Poor long term growth as Net Sales has grown by an annual rate of 2.20% and Operating profit at 2.75% over the last 5 years

Negative results in Jun 25

INTEREST(9M) At JPY 69.34 MM has Grown at 43.16%

With ROE of 7.43%, it has a very attractive valuation with a 0.66 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 87.31%, its profits have risen by 70.8% ; the PEG ratio of the company is 0.1

Market Beating Performance

The stock has generated a return of 87.31% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%

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.

87.31%

2.26

34.53%

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)

2.20%

EBIT Growth (5y)

2.75%

EBIT to Interest (avg)

58.23

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

0.98

Tax Ratio

26.95%

Dividend Payout Ratio

40.26%

Pledged Shares

Institutional Holding

ROCE (avg)

7.28%

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

0.66

EV to EBIT

6.54

EV to EBITDA

5.09

EV to Capital Employed

0.61

EV to Sales

0.49

PEG Ratio

0.12

Dividend Yield

ROCE (Latest)

9.28%

ROE (Latest)

7.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

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

8What is working for the Company

ROCE(HY)

Highest at 8.19%

PRE-TAX PROFIT(Q)

At JPY 102.66 MM has Grown at 137.21%

RAW MATERIAL COST(Y)

Fallen by -22.44% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 21.65%

NET PROFIT(Q)

At JPY 18.23 MM has Grown at 109.47%

-8What is not working for the Company

INTEREST(9M)

At JPY 69.34 MM has Grown at 43.16%

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

Pre-Tax Profit

At JPY 102.66 MM has Grown at 137.21%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 18.23 MM has Grown at 109.47%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 21.65%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -22.44% (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 RIETEC CO., LTD.

Interest

At JPY 43.86 MM has Grown at 34.72%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Non Operating Income

Highest at JPY 1.6 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income