Nissin Foods Holdings Co., Ltd. (2897) 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

Nissin Foods Holdings Co., Ltd.

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Kikkoman Corp.

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Meiji Holdings Co., Ltd.

Kagome Co., Ltd.

CALBEE, Inc.

House Foods Group, Inc.

Why is Nissin Foods Holdings Co., Ltd. ?

High Management Efficiency with a high ROE of 11.24%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 57.44

Healthy long term growth as Net Sales has grown by an annual rate of 10.62% and Operating profit at 11.00%

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at JPY 68,621 MM
INTEREST(Q) At JPY 747 MM has Grown at inf%
RAW MATERIAL COST(Y) Grown by 5.93% (YoY)

With ROE of 12.39%, it has a very attractive valuation with a 1.89 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 -27.45%, its profits have risen by 0.3% ; the PEG ratio of the company is 6.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -27.45% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nissin Foods Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Nissin Foods Holdings Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Nissin Foods Holdings Co., Ltd.

-28.98%

192.19

22.33%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.62%

EBIT Growth (5y)

11.00%

EBIT to Interest (avg)

57.44

Debt to EBITDA (avg)

0.10

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

1.34

Tax Ratio

28.16%

Dividend Payout Ratio

37.96%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

12.74%

ROE (avg)

11.24%

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

1.89

EV to EBIT

14.81

EV to EBITDA

9.73

EV to Capital Employed

1.82

EV to Sales

1.21

PEG Ratio

6.67

Dividend Yield

ROCE (Latest)

12.29%

ROE (Latest)

12.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly 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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-19What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 68,621 MM

INTEREST(Q)

At JPY 747 MM has Grown at inf%

RAW MATERIAL COST(Y)

Grown by 5.93% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 14.66 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.9%

NET SALES(Q)

Lowest at JPY 177,031 MM

PRE-TAX PROFIT(Q)

Fallen at -31.14%

NET PROFIT(Q)

Lowest at JPY 11,219 MM

EPS(Q)

Lowest at JPY 38.11

Here's what is not working for Nissin Foods Holdings Co., Ltd.

Interest

At JPY 747 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Cash Flow

Lowest at JPY 68,621 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Net Sales

Lowest at JPY 177,031 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

Fallen at -31.14%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 11,219 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 38.11

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at 14.66 %

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 6.9%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 5.93% (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