down arrow

NIPPON RIETEC CO., LTD.

  • Market Cap: Small Cap
  • Industry: Construction
  • ISIN: JP3510600004
  • TKS: 1938
JPY
2,626.00
31 (1.19%)

Sep 17

TKS

 View all stocks in this country
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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.
Wakachiku Construction Co., Ltd.
DAI-DAN Co., Ltd.
Fukuda Corp.
TANSEISHA Co., Ltd.
Daiichi Kensetsu Corp.
Kawada Technologies, Inc.
NIPPON RIETEC CO., LTD.
P.S. Mitsubishi Construction Co., Ltd.
Tokyo Energy & Systems, Inc.
Fuji Furukawa Engineering & Construction Co. Ltd.

Why is NIPPON RIETEC CO., LTD. ?

1
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
2
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
3
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
4
Positive results in Jun 26
  • PRE-TAX PROFIT(Q) At JPY 648.58 MM has Grown at 531.78%
  • NET PROFIT(Q) At JPY 406.21 MM has Grown at 2,128.28%
  • ROCE(HY) Highest at 9.15%
5
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 32.29%, its profits have risen by 44.5% ; the PEG ratio of the company is 0.3
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to NIPPON RIETEC CO., LTD. should be less than 10%
  2. 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.
32.29%
3.50
34.78%
Japan Nikkei 225
43.52%
1.48
29.43%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
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)
0
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
0
Institutional Holding
0
ROCE (avg)
7.84%
ROE (avg)
5.18%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
12
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
NA
ROCE (Latest)
9.68%
ROE (Latest)
8.63%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Bullish
Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company
PRE-TAX PROFIT(Q)

At JPY 648.58 MM has Grown at 531.78%

NET PROFIT(Q)

At JPY 406.21 MM has Grown at 2,128.28%

ROCE(HY)

Highest at 9.15%

INTEREST COVERAGE RATIO(Q)

Highest at 10,135.29

RAW MATERIAL COST(Y)

Fallen by -27.12% (YoY

CASH AND EQV(HY)

Highest at JPY 17,774.95 MM

DEBT-EQUITY RATIO (HY)

Lowest at -10.03 %

-7What is not working for the Company
INTEREST(HY)

At JPY 50.66 MM has Grown at 15.49%

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

Pre-Tax Profit
At JPY 648.58 MM has Grown at 531.78%
Year on Year (YoY)
MOJO Watch
Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit
At JPY 406.21 MM has Grown at 2,128.28%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very positive

Net Profit (JPY MM)

Interest Coverage Ratio
Highest at 10,135.29
in the last five periods
MOJO Watch
The company's ability to manage interest payments is improving

Operating Profit to Interest

Cash and Eqv
Highest at JPY 17,774.95 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio
Lowest at -10.03 %
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 -27.12% (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 50.66 MM has Grown at 15.49%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Footer loading