Nishi-Nippon Railroad Co., Ltd. (9031) 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

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Why is Nishi-Nippon Railroad Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.64%

The company has been able to generate a Return on Capital Employed (avg) of 3.64% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 2.63% and Operating profit at 10.15% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 7.10% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.63% and Operating profit at 10.15% over the last 5 years

Positive results in Dec 25

ROCE(HY) Highest at 12.81%
OPERATING PROFIT(Q) Highest at JPY 16,006 MM
OPERATING PROFIT MARGIN(Q) Highest at 13.2 %

With ROCE of 4.72%, it has a very attractive valuation with a 0.86 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 36.23%, its profits have fallen by -12%
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 Nishi-Nippon Railroad Co., Ltd. should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

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

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

No Data Found

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.63%

EBIT Growth (5y)

10.15%

EBIT to Interest (avg)

6.64

Debt to EBITDA (avg)

10.56

Net Debt to Equity (avg)

1.26

Sales to Capital Employed (avg)

0.76

Tax Ratio

30.36%

Dividend Payout Ratio

14.97%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

3.64%

ROE (avg)

7.10%

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

0.67

EV to EBIT

18.15

EV to EBITDA

10.32

EV to Capital Employed

0.86

EV to Sales

1.09

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

4.72%

ROE (Latest)

8.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

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

13What is working for the Company

ROCE(HY)

Highest at 12.81%

OPERATING PROFIT(Q)

Highest at JPY 16,006 MM

OPERATING PROFIT MARGIN(Q)

Highest at 13.2 %

PRE-TAX PROFIT(Q)

Highest at JPY 14,734 MM

NET PROFIT(Q)

Highest at JPY 11,247.55 MM

EPS(Q)

Highest at JPY 148.39

-9What is not working for the Company

INTEREST(Q)

Highest at JPY 830 MM

Here's what is working for Nishi-Nippon Railroad Co., Ltd.

Operating Profit

Highest at JPY 16,006 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 13.2 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 14,734 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 11,247.55 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 11,247.55 MM has Grown at 59.42%

over average net sales of the previous four periods of JPY 7,055.38 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 148.39

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Depreciation

Highest at JPY 6,352 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 Nishi-Nippon Railroad Co., Ltd.

Interest

Highest at JPY 830 MM

in the last five periods and Increased by 5.6% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)