Nippon Shokubai Co., Ltd. (4114) 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

Nippon Shokubai Co., Ltd.

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Mitsui & Co., Ltd.

Mitsubishi Chemical Group Corp.

Why is Nippon Shokubai Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 16.69

With a growth in Net Profit of 112.65%, the company declared Very Positive results in Dec 25

ROCE(HY) Highest at 4.59%
RAW MATERIAL COST(Y) Fallen by -19.68% (YoY)
OPERATING PROFIT(Q) Highest at JPY 13,970 MM

With ROE of 4.82%, it has a very attractive valuation with a 0.66 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 27.23%, its profits have risen by 25.7%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Nippon Shokubai Co., Ltd. should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

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

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

Is Nippon Shokubai Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Nippon Shokubai Co., Ltd.

27.23%

2.40

20.37%

Japan Nikkei 225

38.94%

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)

6.26%

EBIT Growth (5y)

8.17%

EBIT to Interest (avg)

16.69

Debt to EBITDA (avg)

0.20

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

0.95

Tax Ratio

24.76%

Dividend Payout Ratio

100.09%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

5.05%

ROE (avg)

4.27%

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

0.66

EV to EBIT

14.05

EV to EBITDA

4.95

EV to Capital Employed

0.65

EV to Sales

0.59

PEG Ratio

Dividend Yield

ROCE (Latest)

4.64%

ROE (Latest)

4.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

10What is working for the Company

ROCE(HY)

Highest at 4.59%

RAW MATERIAL COST(Y)

Fallen by -19.68% (YoY

OPERATING PROFIT(Q)

Highest at JPY 13,970 MM

OPERATING PROFIT MARGIN(Q)

Highest at 14.09 %

PRE-TAX PROFIT(Q)

Highest at JPY 7,380 MM

NET PROFIT(Q)

Highest at JPY 6,758 MM

EPS(Q)

Highest at JPY 45.38

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 47,858 MM

DEBT-EQUITY RATIO (HY)

Highest at 0.58 %

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

Operating Profit

Highest at JPY 13,970 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 14.09 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 7,380 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 7,380 MM has Grown at 57.84%

over average net sales of the previous four periods of JPY 4,675.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 6,758 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 6,758 MM has Grown at 68.09%

over average net sales of the previous four periods of JPY 4,020.5 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 45.38

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -19.68% (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 8,205 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 Shokubai Co., Ltd.

Operating Cash Flow

Lowest at JPY 47,858 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Debt-Equity Ratio

Highest at 0.58 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio