Nippon Sharyo, Ltd. (7102) 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

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Nippon Sharyo, Ltd.

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Why is Nippon Sharyo, Ltd. ?

With a growth in Net Profit of 163%, the company declared Outstanding results in Dec 25

The company has declared positive results for the last 3 consecutive quarters
ROCE(HY) Highest at 16.15%
DEBT-EQUITY RATIO (HY) Lowest at 42.43 %
INTEREST COVERAGE RATIO(Q) Highest at 6,508.33

With ROCE of 7.25%, it has a attractive valuation with a 0.65 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 70.63%, its profits have risen by 20.8% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0

Market Beating Performance

The stock has generated a return of 70.63% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Nippon Sharyo, Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is Nippon Sharyo, Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Nippon Sharyo, Ltd.

70.63%

3237.92

38.07%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.36%

EBIT Growth (5y)

-4.07%

EBIT to Interest (avg)

22.00

Debt to EBITDA (avg)

3.68

Net Debt to Equity (avg)

0.48

Sales to Capital Employed (avg)

0.95

Tax Ratio

21.95%

Dividend Payout Ratio

7.87%

Pledged Shares

Institutional Holding

ROCE (avg)

7.70%

ROE (avg)

10.76%

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

0.48

EV to EBIT

8.92

EV to EBITDA

6.55

EV to Capital Employed

0.65

EV to Sales

0.64

PEG Ratio

0.23

Dividend Yield

0.05%

ROCE (Latest)

7.25%

ROE (Latest)

9.96%

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

Mildly Bullish

OBV

No Trend

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

22What is working for the Company

ROCE(HY)

Highest at 16.15%

DEBT-EQUITY RATIO (HY)

Lowest at 42.43 %

INTEREST COVERAGE RATIO(Q)

Highest at 6,508.33

NET PROFIT(Q)

At JPY 2,872 MM has Grown at 163%

RAW MATERIAL COST(Y)

Fallen by -61.32% (YoY

OPERATING PROFIT(Q)

Highest at JPY 3,905 MM

OPERATING PROFIT MARGIN(Q)

Highest at 15.46 %

PRE-TAX PROFIT(Q)

Highest at JPY 3,556 MM

-2What is not working for the Company

INTEREST(Q)

At JPY 60 MM has Grown at 17.65%

Here's what is working for Nippon Sharyo, Ltd.

Interest Coverage Ratio

Highest at 6,508.33

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At JPY 3,556 MM has Grown at 135.5%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 2,872 MM has Grown at 163%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at 42.43 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Operating Profit

Highest at JPY 3,905 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 15.46 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 3,556 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by -61.32% (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 667 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 Sharyo, Ltd.

Interest

At JPY 60 MM has Grown at 17.65%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)