Nishimatsu Construction Co., Ltd. (1820) 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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Token Corp.

Sumitomo Forestry Co., Ltd.

Nishimatsu Construction Co., Ltd.

Obayashi Corp.

Nagawa Co., Ltd.

Pressance Corp.

Why is Nishimatsu Construction Co., Ltd. ?

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

Poor long term growth as Operating profit has grown by an annual rate -3.58% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate -3.58% of over the last 5 years

Flat results in Dec 25

INTEREST(HY) At JPY 1,158 MM has Grown at 41.39%
DEBT-EQUITY RATIO (HY) Highest at 127.8 %
INVENTORY TURNOVER RATIO(HY) Lowest at 11.21 times

With ROCE of 6.53%, it has a very attractive valuation with a 1.08 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 17.50%, its profits have risen by 41.1% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 17.50% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nishimatsu Construction Co., Ltd. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

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

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

Is Nishimatsu Construction Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Nishimatsu Construction Co., Ltd.

17.5%

1.51

22.98%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.30%

EBIT Growth (5y)

-3.58%

EBIT to Interest (avg)

19.60

Debt to EBITDA (avg)

5.27

Net Debt to Equity (avg)

0.88

Sales to Capital Employed (avg)

0.99

Tax Ratio

28.37%

Dividend Payout Ratio

49.50%

Pledged Shares

Institutional Holding

ROCE (avg)

6.75%

ROE (avg)

9.76%

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

1.15

EV to EBIT

16.57

EV to EBITDA

13.68

EV to Capital Employed

1.08

EV to Sales

0.95

PEG Ratio

0.12

Dividend Yield

0.01%

ROCE (Latest)

6.53%

ROE (Latest)

10.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

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

6What is working for the Company

ROCE(HY)

Highest at 11.27%

RAW MATERIAL COST(Y)

Fallen by -18.33% (YoY

OPERATING PROFIT(Q)

Highest at JPY 8,767 MM

OPERATING PROFIT MARGIN(Q)

Highest at 8.84 %

EPS(Q)

Highest at JPY 168.85

-11What is not working for the Company

INTEREST(HY)

At JPY 1,158 MM has Grown at 41.39%

DEBT-EQUITY RATIO (HY)

Highest at 127.8 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 11.21 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.66 times

Here's what is working for Nishimatsu Construction Co., Ltd.

Operating Profit

Highest at JPY 8,767 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 8.84 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

EPS

Highest at JPY 168.85

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -18.33% (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 Nishimatsu Construction Co., Ltd.

Interest

At JPY 1,158 MM has Grown at 41.39%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 127.8 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 11.21 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 1.66 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio