Nippon Seiki Co., Ltd. (7287) 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

Bando Chemical Industries Ltd.

Press Kogyo Co., Ltd.

Nippon Seiki Co., Ltd.

F.C.C. Co., Ltd.

G-Tekt Corp.

Topre Corp.

Aisan Industry Co., Ltd.

KYB Corp.

Musashi Seimitsu Industry Co., Ltd.

Pacific Industrial Co., Ltd.

PIOLAX, Inc.

Why is Nippon Seiki Co., Ltd. ?

With a growth in Net Sales of 19.73%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 5 consecutive quarters
OPERATING CASH FLOW(Y) Highest at JPY 40,481 MM
NET PROFIT(9M) Higher at JPY 7,518 MM
CASH AND EQV(HY) Highest at JPY 102,290 MM

With ROCE of 5.96%, it has a very attractive valuation with a 0.64 Enterprise value to Capital Employed

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 85.56%, its profits have risen by 174.2% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Market Beating Performance

The stock has generated a return of 85.56% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 75.22%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Nippon Seiki Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Nippon Seiki Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Nippon Seiki Co., Ltd.

85.56%

2.53

32.04%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.45%

EBIT Growth (5y)

72.14%

EBIT to Interest (avg)

14.29

Debt to EBITDA (avg)

2.09

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.26

Tax Ratio

32.88%

Dividend Payout Ratio

47.68%

Pledged Shares

Institutional Holding

0.10%

ROCE (avg)

2.22%

ROE (avg)

1.43%

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

0.67

EV to EBIT

10.78

EV to EBITDA

5.25

EV to Capital Employed

0.64

EV to Sales

0.42

PEG Ratio

0.08

Dividend Yield

ROCE (Latest)

5.96%

ROE (Latest)

4.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

OPERATING CASH FLOW(Y)

Highest at JPY 40,481 MM

NET PROFIT(9M)

Higher at JPY 7,518 MM

CASH AND EQV(HY)

Highest at JPY 102,290 MM

DEBT-EQUITY RATIO (HY)

Lowest at -8.25 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.86 times

DIVIDEND PER SHARE(HY)

Highest at JPY 6.34

NET SALES(Q)

Highest at JPY 93,532 MM

-3What is not working for the Company

INTEREST(Q)

At JPY 106 MM has Grown at 30.86%

NET PROFIT(Q)

At JPY 1,611 MM has Fallen at -37.82%

Here's what is working for Nippon Seiki Co., Ltd.

Operating Cash Flow

Highest at JPY 40,481 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

Highest at JPY 93,532 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 93,532 MM has Grown at 15.84%

over average net sales of the previous four periods of JPY 80,739.75 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 102,290 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -8.25 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.86 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 6.34

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Depreciation

Highest at JPY 3,568 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 Seiki Co., Ltd.

Interest

At JPY 106 MM has Grown at 30.86%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 1,611 MM has Fallen at -37.82%

over average net sales of the previous four periods of JPY 2,591 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)