Nippon Ski Resort Development Co., Ltd. (6040) 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

IG Port, Inc.

Heiwa Corp.

COVER Corp.

AEON Fantasy Co., Ltd.

Nippon Ski Resort Development Co., Ltd.

PIA Corp.

Central Sports Co., Ltd.

ROUND ONE Corp.

Tohokushinsha Film Corp.

Shochiku Co., Ltd.

Amuse, Inc.

Why is Nippon Ski Resort Development Co., Ltd. ?

Poor Management Efficiency with a low ROE of 10.97%

The company has been able to generate a Return on Equity (avg) of 10.97% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 20.93% CAGR growth in Net Sales over the last 5 years

The company has been able to generate a Return on Equity (avg) of 10.97% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 20.93% over the last 5 years

Flat results in Apr 26

INTEREST(HY) At JPY 28.39 MM has Grown at 73.94%
DEBTORS TURNOVER RATIO(HY) Lowest at 20.27 times

With ROE of 20.52%, it has a attractive valuation with a 2.27 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 -20.25%, its profits have risen by 19.4% ; the PEG ratio of the company is 0.6

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -20.25% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nippon Ski Resort Development Co., Ltd. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

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

Is Nippon Ski Resort Development Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nippon Ski Resort Development Co., Ltd.

-19.6%

0.96

32.97%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.93%

EBIT Growth (5y)

38.91%

EBIT to Interest (avg)

74.21

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

0.84

Tax Ratio

32.12%

Dividend Payout Ratio

10.09%

Pledged Shares

Institutional Holding

ROCE (avg)

22.04%

ROE (avg)

10.97%

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

2.27

EV to EBIT

10.66

EV to EBITDA

6.74

EV to Capital Employed

2.38

EV to Sales

2.00

PEG Ratio

0.57

Dividend Yield

ROCE (Latest)

22.30%

ROE (Latest)

20.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

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

8What is working for the Company

CASH AND EQV(HY)

Highest at JPY 8,468.85 MM

NET SALES(Q)

Highest at JPY 4,526.43 MM

PRE-TAX PROFIT(Q)

Highest at JPY 2,777.6 MM

NET PROFIT(Q)

Highest at JPY 1,732.02 MM

EPS(Q)

Highest at JPY 36.54

-11What is not working for the Company

INTEREST(HY)

At JPY 28.39 MM has Grown at 73.94%

DEBTORS TURNOVER RATIO(HY)

Lowest at 20.27 times

Here's what is working for Nippon Ski Resort Development Co., Ltd.

Net Sales

Highest at JPY 4,526.43 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

Highest at JPY 2,777.6 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 1,732.02 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 36.54

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 8,468.85 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 334.02 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 Ski Resort Development Co., Ltd.

Interest

At JPY 28.39 MM has Grown at 73.94%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 20.27 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio