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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Why is Nippon Sharyo, Ltd. ?

With a growth in Operating Profit of 49.24%, the company declared Outstanding results in Mar 26

The company has declared positive results for the last 7 consecutive quarters
ROCE(HY) Highest at 15.88%
INTEREST COVERAGE RATIO(Q) Highest at 9,901.96
RAW MATERIAL COST(Y) Fallen by -32.06% (YoY)

With ROCE of 9.20%, it has a very attractive valuation with a 0.84 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 52.39%, its profits have risen by 92.5% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

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.

52.39%

2901.98

37.03%

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)

-0.23%

EBIT Growth (5y)

3.43%

EBIT to Interest (avg)

22.00

Debt to EBITDA (avg)

3.68

Net Debt to Equity (avg)

0.49

Sales to Capital Employed (avg)

0.94

Tax Ratio

21.95%

Dividend Payout Ratio

7.87%

Pledged Shares

Institutional Holding

ROCE (avg)

7.70%

ROE (avg)

10.75%

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

0.77

EV to EBIT

9.14

EV to EBITDA

7.23

EV to Capital Employed

0.84

EV to Sales

0.90

PEG Ratio

0.06

Dividend Yield

ROCE (Latest)

9.20%

ROE (Latest)

15.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

19What is working for the Company

ROCE(HY)

Highest at 15.88%

INTEREST COVERAGE RATIO(Q)

Highest at 9,901.96

RAW MATERIAL COST(Y)

Fallen by -32.06% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 2.34

NET SALES(Q)

Highest at JPY 28,151 MM

OPERATING PROFIT(Q)

Highest at JPY 5,050 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.94 %

PRE-TAX PROFIT(Q)

Highest at JPY 5,232 MM

NET PROFIT(Q)

Highest at JPY 5,237 MM

-1What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.49 times

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

Interest Coverage Ratio

Highest at 9,901.96

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at JPY 28,151 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 5,050 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 17.94 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 5,232 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 5,237 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 5,237 MM has Grown at 118.48%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Dividend per share

Highest at JPY 2.34

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -32.06% (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 712 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.

Inventory Turnover Ratio

Lowest at 2.49 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at JPY 0.31 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income