Nishikawa Rubber Co., Ltd. (5161) 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

Nishikawa Rubber Co., Ltd.

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Why is Nishikawa Rubber Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 11.17

The company has declared positive results in Mar'2025 after 2 consecutive negative quarters

DEBT-EQUITY RATIO (HY) Lowest at -35.44 %
RAW MATERIAL COST(Y) Fallen by -1.45% (YoY)
CASH AND EQV(HY) Highest at JPY 99,566 MM

With ROE of 5.67%, it has a very attractive valuation with a 1.12 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 173.24%, its profits have fallen by -19.3%
At the current price, the company has a high dividend yield of 0

Market Beating Performance

The stock has generated a return of 173.24% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Nishikawa Rubber Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Nishikawa Rubber Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nishikawa Rubber Co., Ltd.

173.24%

2.52

82.10%

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)

4.40%

EBIT Growth (5y)

1.99%

EBIT to Interest (avg)

11.18

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

1.11

Tax Ratio

34.95%

Dividend Payout Ratio

101.98%

Pledged Shares

Institutional Holding

ROCE (avg)

7.74%

ROE (avg)

4.10%

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

1.12

EV to EBIT

9.22

EV to EBITDA

5.03

EV to Capital Employed

1.19

EV to Sales

0.56

PEG Ratio

Dividend Yield

0.01%

ROCE (Latest)

12.93%

ROE (Latest)

5.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

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

6What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -35.44 %

RAW MATERIAL COST(Y)

Fallen by -1.45% (YoY

CASH AND EQV(HY)

Highest at JPY 99,566 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 13.13%

DEBTORS TURNOVER RATIO(HY)

Highest at 6.93%

-12What is not working for the Company

INTEREST(HY)

At JPY 356 MM has Grown at 22.76%

NET PROFIT(9M)

At JPY 3,306.35 MM has Grown at -41.53%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,860

Here's what is working for Nishikawa Rubber Co., Ltd.

Debt-Equity Ratio

Lowest at -35.44 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Cash and Eqv

Highest at JPY 99,566 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 13.13%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 6.93%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -1.45% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Here's what is not working for Nishikawa Rubber Co., Ltd.

Interest

At JPY 356 MM has Grown at 22.76%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,860

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At JPY 2,541.35 MM has Grown at -35.04%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)