Nippon Seisen Co., Ltd. (5659) 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

Nippon Thompson Co., Ltd.

Topy Industries, Ltd.

ALCONIX Corp.

Nippon Seisen Co., Ltd.

Nachi-Fujikoshi Corp.

Oiles Corp.

Neturen Co., Ltd.

Ryobi Ltd.

CK San-Etsu Co., Ltd.

Nippon Denko Co., Ltd.

Tsubaki Nakashima Co., Ltd

Why is Nippon Seisen Co., Ltd. ?

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

Low Debt Company with Strong Long Term Fundamental Strength

OPERATING PROFIT MARGIN(Q) Lowest at 7.73 %
RAW MATERIAL COST(Y) Grown by 34.2% (YoY)
OPERATING PROFIT(Q) Lowest at JPY 872 MM

With ROE of 8.01%, it has a very attractive valuation with a 0.82 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 -7.23%, its profits have risen by 27.5%

Below par performance in long term as well as near term

Along with generating -7.23% 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 Seisen Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Nippon Seisen Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nippon Seisen Co., Ltd.

-6.97%

-0.22

27.67%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.01%

EBIT Growth (5y)

18.30%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

1.18

Tax Ratio

28.13%

Dividend Payout Ratio

52.85%

Pledged Shares

Institutional Holding

ROCE (avg)

17.44%

ROE (avg)

7.55%

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

0.82

EV to EBIT

3.79

EV to EBITDA

2.70

EV to Capital Employed

0.69

EV to Sales

0.36

PEG Ratio

Dividend Yield

ROCE (Latest)

18.30%

ROE (Latest)

8.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly 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

4What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

CASH AND EQV(HY)

Highest at JPY 33,693 MM

DEBT-EQUITY RATIO (HY)

Lowest at -40.16 %

-15What is not working for the Company

OPERATING PROFIT MARGIN(Q)

Lowest at 7.73 %

RAW MATERIAL COST(Y)

Grown by 34.2% (YoY

OPERATING PROFIT(Q)

Lowest at JPY 872 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 483 MM

NET PROFIT(Q)

Lowest at JPY 316 MM

EPS(Q)

Lowest at JPY 10.27

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

Cash and Eqv

Highest at JPY 33,693 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -40.16 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Nippon Seisen Co., Ltd.

Pre-Tax Profit

At JPY 483 MM has Fallen at -57.91%

over average net sales of the previous four periods of JPY 1,147.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 316 MM has Fallen at -61.11%

over average net sales of the previous four periods of JPY 812.5 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit Margin

Lowest at 7.73 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at JPY 872 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 483 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 316 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 10.27

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 34.2% (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