ScoreWhy is Nippon Shikizai, Inc. ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Operating profit has grown by an annual rate 16.61% of over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 6.22% signifying low profitability per unit of shareholders funds
2
With a growth in Net Sales of 45.08%, the company declared Outstanding results in Feb 26
- INTEREST COVERAGE RATIO(Q) Highest at 1,019.22
- RAW MATERIAL COST(Y) Fallen by -29.59% (YoY)
- DEBT-EQUITY RATIO (HY) Lowest at 207.14 %
3
With ROCE of 0.50%, it has a attractive valuation with a 0.85 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 8.63%, its profits have fallen by -49.5%
4
Underperformed the market in the last 1 year
- The stock has generated a return of 8.63% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Nippon Shikizai, Inc. should be less than 10%
- Overall Portfolio exposure to FMCG should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nippon Shikizai, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Nippon Shikizai, Inc.
-100.0%
-1.07
26.36%
Japan Nikkei 225
85.83%
3.09
27.80%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.03%
EBIT Growth (5y)
16.61%
EBIT to Interest (avg)
-0.16
Debt to EBITDA (avg)
7.97
Net Debt to Equity (avg)
2.24
Sales to Capital Employed (avg)
1.25
Tax Ratio
35.10%
Dividend Payout Ratio
18.52%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.14%
ROE (avg)
6.22%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
0.56
EV to EBIT
168.79
EV to EBITDA
10.01
EV to Capital Employed
0.85
EV to Sales
0.62
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
0.50%
ROE (Latest)
5.91%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 1,019.22
RAW MATERIAL COST(Y)
Fallen by -29.59% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 207.14 %
DIVIDEND PER SHARE(HY)
Highest at JPY 5.31
NET SALES(Q)
Highest at JPY 5,098.05 MM
OPERATING PROFIT(Q)
Highest at JPY 410.39 MM
OPERATING PROFIT MARGIN(Q)
Highest at 8.05 %
PRE-TAX PROFIT(Q)
At JPY 149.13 MM has Grown at 94.72%
NET PROFIT(Q)
At JPY 118.2 MM has Grown at 101.24%
-1What is not working for the Company
CASH AND EQV(HY)
Lowest at JPY 2,008.63 MM
Here's what is working for Nippon Shikizai, Inc.
Net Sales
At JPY 5,098.05 MM has Grown at 28.86%
over average net sales of the previous four periods of JPY 3,956.37 MMMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Interest Coverage Ratio
Highest at 1,019.22
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at JPY 5,098.05 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 410.39 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 8.05 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
At JPY 149.13 MM has Grown at 94.72%
over average net sales of the previous four periods of JPY 76.59 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 118.2 MM has Grown at 101.24%
over average net sales of the previous four periods of JPY 58.74 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Debt-Equity Ratio
Lowest at 207.14 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend per share
Highest at JPY 5.31
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Raw Material Cost
Fallen by -29.59% (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 245.73 MM
in the last five periodsMOJO 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 Shikizai, Inc.
Cash and Eqv
Lowest at JPY 2,008.63 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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