Nippon Soda Co., Ltd. (4041) 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.

Mitsui Chemicals, Inc.

JCU Corp.

Mitsui & Co., Ltd.

Nippon Shokubai Co., Ltd.

Nippon Kayaku Co., Ltd.

Nippon Soda Co., Ltd.

Asahi Kasei Corp.

Kuraray Co., Ltd.

KH Neochem Co., Ltd.

Mitsubishi Chemical Group Corp.

Why is Nippon Soda Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 45.16

Flat results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 2,774.37
RAW MATERIAL COST(Y) Grown by 5.89% (YoY)
INTEREST(Q) Highest at JPY 199 MM

With ROCE of 7.01%, it has a very attractive valuation with a 1.07 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 19.13%, its profits have fallen by -21.2%

Underperformed the market in the last 1 year

The stock has generated a return of 19.13% 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 Soda 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 Soda Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nippon Soda Co., Ltd.

-100.0%

1.81

21.54%

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)

2.81%

EBIT Growth (5y)

10.43%

EBIT to Interest (avg)

45.16

Debt to EBITDA (avg)

1.01

Net Debt to Equity (avg)

0.15

Sales to Capital Employed (avg)

0.65

Tax Ratio

25.35%

Dividend Payout Ratio

51.37%

Pledged Shares

Institutional Holding

0.12%

ROCE (avg)

7.19%

ROE (avg)

9.00%

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

1.09

EV to EBIT

15.34

EV to EBITDA

10.27

EV to Capital Employed

1.07

EV to Sales

1.63

PEG Ratio

Dividend Yield

ROCE (Latest)

7.01%

ROE (Latest)

7.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

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

14What is working for the Company

ROCE(HY)

Highest at 9.33%

PRE-TAX PROFIT(Q)

Highest at JPY 8,922 MM

NET PROFIT(Q)

Highest at JPY 7,052.95 MM

CASH AND EQV(HY)

Highest at JPY 48,013 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 3.23

EPS(Q)

Highest at JPY 108.86

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 2,774.37

RAW MATERIAL COST(Y)

Grown by 5.89% (YoY

INTEREST(Q)

Highest at JPY 199 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.05 %

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

Pre-Tax Profit

Highest at JPY 8,922 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 8,922 MM has Grown at 136.47%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 7,052.95 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Profit

At JPY 7,052.95 MM has Grown at 151.63%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

EPS

Highest at JPY 108.86

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 48,013 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 3.23

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

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

Interest

At JPY 199 MM has Grown at 19.16%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 2,774.37

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 199 MM

in the last five periods and Increased by 19.16% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 12.05 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 5.89% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales