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

Sanyo Chemical Industries Ltd.

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Mitsui & Co., Ltd.

Nippon Kayaku Co., Ltd.

Nippon Shokubai Co., Ltd.

Nippon Soda Co., Ltd.

Asahi Kasei Corp.

Kuraray Co., Ltd.

KH Neochem 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

Poor long term growth as Operating profit has grown by an annual rate 22.70% of over the last 5 years

INTEREST(Q) At JPY 381 MM has Grown at 64.94%
DEBT-EQUITY RATIO (HY) Highest at 3.45 %
PRE-TAX PROFIT(Q) Lowest at JPY 2,706 MM

With ROE of 4.77%, it has a very attractive valuation with a 0.94 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 28.14%, its profits have fallen by -0.4%

Underperformed the market in the last 1 year

The stock has generated a return of 28.14% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

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, Low Return

Absolute

Risk Adjusted

Volatility

Nippon Shokubai Co., Ltd.

28.14%

1.76

19.34%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.14%

EBIT Growth (5y)

22.70%

EBIT to Interest (avg)

16.69

Debt to EBITDA (avg)

0.20

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

0.94

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

0.94

EV to EBIT

21.11

EV to EBITDA

7.41

EV to Capital Employed

0.94

EV to Sales

0.92

PEG Ratio

Dividend Yield

ROCE (Latest)

4.45%

ROE (Latest)

4.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (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

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 389.16%

RAW MATERIAL COST(Y)

Fallen by -6.58% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 4.26

-10What is not working for the Company

INTEREST(Q)

At JPY 381 MM has Grown at 64.94%

DEBT-EQUITY RATIO (HY)

Highest at 3.45 %

PRE-TAX PROFIT(Q)

Lowest at JPY 2,706 MM

NET PROFIT(Q)

Lowest at JPY 2,393 MM

EPS(Q)

Lowest at JPY 16.19

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

Dividend per share

Highest at JPY 4.26

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 389.16%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -6.58% (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

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

Interest

At JPY 381 MM has Grown at 64.94%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 2,706 MM has Fallen at -47.69%

over average net sales of the previous four periods of JPY 5,172.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 2,393 MM has Fallen at -46.04%

over average net sales of the previous four periods of JPY 4,434.75 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Pre-Tax Profit

Lowest at JPY 2,706 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 2,393 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 16.19

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at 3.45 %

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