Nireco Corp. (6863) 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

Eiwa Corp.

Kyoritsu Electric Corp.

Kyowa Electronic Instruments Co., Ltd.

NAGOYA ELECTRIC WORKS CO., LTD.

Nireco Corp.

Nadex Co., Ltd.

Chino Corp.

Adtec Plasma Technology Co., Ltd.

Shizuki Electric Co., Inc.

DKK-TOA Corp.

Shikino High-Tech Co., Ltd.

Why is Nireco Corp. ?

Poor Management Efficiency with a low ROE of 5.55%

The company has been able to generate a Return on Equity (avg) of 5.55% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 5.55%

Poor long term growth as Net Sales has grown by an annual rate of 5.12% over the last 5 years
The company has been able to generate a Return on Equity (avg) of 5.55% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 5.12% over the last 5 years

Flat results in Jun 26

INTEREST(HY) At JPY 2.77 MM has Grown at 169.46%
NET PROFIT(Q) At JPY 149.59 MM has Fallen at -57.96%
INTEREST COVERAGE RATIO(Q) Lowest at 22,981.45

With ROE of 8.11%, it has a very attractive valuation with a 1.17 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 35.78%, its profits have risen by 9.8% ; the PEG ratio of the company is 1.5
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nireco Corp. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Nireco Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nireco Corp.

-100.0%

-0.46

76.81%

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)

5.12%

EBIT Growth (5y)

15.72%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

0.64

Tax Ratio

26.85%

Dividend Payout Ratio

45.23%

Pledged Shares

Institutional Holding

ROCE (avg)

11.77%

ROE (avg)

5.55%

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

1.17

EV to EBIT

9.44

EV to EBITDA

8.06

EV to Capital Employed

1.21

EV to Sales

1.45

PEG Ratio

1.47

Dividend Yield

ROCE (Latest)

12.82%

ROE (Latest)

8.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

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

3What is working for the Company

CASH AND EQV(HY)

Highest at JPY 10,505.67 MM

DEBT-EQUITY RATIO (HY)

Lowest at -29.09 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.15 times

-17What is not working for the Company

INTEREST(HY)

At JPY 2.77 MM has Grown at 169.46%

NET PROFIT(Q)

At JPY 149.59 MM has Fallen at -57.96%

INTEREST COVERAGE RATIO(Q)

Lowest at 22,981.45

PRE-TAX PROFIT(Q)

At JPY 278.96 MM has Fallen at -42.14%

RAW MATERIAL COST(Y)

Grown by 9.83% (YoY

EPS(Q)

Lowest at JPY 2.29

Here's what is working for Nireco Corp.

Cash and Eqv

Highest at JPY 10,505.67 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -29.09 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.15 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Nireco Corp.

Interest

At JPY 2.77 MM has Grown at 169.46%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 149.59 MM has Fallen at -57.96%

over average net sales of the previous four periods of JPY 355.81 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 22,981.45

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At JPY 278.96 MM has Fallen at -42.14%

over average net sales of the previous four periods of JPY 482.14 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

EPS

Lowest at JPY 2.29

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 9.83% (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