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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Eiwa Corp.

Nireco Corp.

Shizuki Electric Co., Inc.

NAGOYA ELECTRIC WORKS CO., LTD.

Kyoritsu Electric Corp.

Nadex Co., Ltd.

Chino Corp.

Kyowa Electronic Instruments Co., Ltd.

Adtec Plasma Technology Co., Ltd.

DKK-TOA Corp.

Shikino High-Tech Co., Ltd.

Why is Nireco Corp. ?

Company has very low debt and has enough cash to service the debt requirements

Positive results in Jun 25

ROCE(HY) Highest at 9.18%

With ROE of 9.14%, it has a very attractive valuation with a 0.88 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 27.02%, its profits have risen by 49.3% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you buy?

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?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Nireco Corp.

27.02%

0.92

33.87%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.16%

EBIT Growth (5y)

14.91%

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

24.44%

Dividend Payout Ratio

45.00%

Pledged Shares

Institutional Holding

ROCE (avg)

10.38%

ROE (avg)

5.54%

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

0.88

EV to EBIT

5.30

EV to EBITDA

4.55

EV to Capital Employed

0.84

EV to Sales

0.94

PEG Ratio

0.20

Dividend Yield

0.03%

ROCE (Latest)

15.77%

ROE (Latest)

9.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

2What is working for the Company

ROCE(HY)

Highest at 9.18%

-20What is not working for the Company

NET SALES(Q)

At JPY 2,283.5 MM has Fallen at -15.09%

PRE-TAX PROFIT(Q)

At JPY 178.13 MM has Fallen at -64.87%

NET PROFIT(Q)

At JPY 105.63 MM has Fallen at -72.35%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.59%

INTEREST COVERAGE RATIO(Q)

Lowest at 41,281.69

RAW MATERIAL COST(Y)

Grown by 8.88% (YoY

OPERATING PROFIT(Q)

Lowest at JPY 209.71 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.18 %

EPS(Q)

Lowest at JPY 14.06

Here's what is not working for Nireco Corp.

Net Sales

At JPY 2,283.5 MM has Fallen at -15.09%

over average net sales of the previous four periods of JPY 2,689.24 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 178.13 MM has Fallen at -64.87%

over average net sales of the previous four periods of JPY 507.04 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 105.63 MM has Fallen at -72.35%

over average net sales of the previous four periods of JPY 381.97 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 41,281.69

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 1.59% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at JPY 2,283.5 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 209.71 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 9.18 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 178.13 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 105.63 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 14.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 8.88% (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