Nitchitsu Co., Ltd. (7021) 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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Sagami Rubber Industries Co., Ltd.

Kuriyama Holdings Corp.

Nitchitsu Co., Ltd.

BALMUDA, Inc.

Why is Nitchitsu Co., Ltd. ?

Poor Management Efficiency with a low ROE of 1.04%

The company has been able to generate a Return on Equity (avg) of 1.04% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 1.79% and Operating profit at 11.46% over the last 5 years

With a fall in PBT of -22.92%, the company declared Very Negative results in Dec 25

The company has declared negative results for the last 2 consecutive quarters
INTEREST(HY) At JPY 8.31 MM has Grown at 27.5%
NET PROFIT(Q) At JPY 6.81 MM has Fallen at -81.74%
NET SALES(Q) At JPY 2,203.05 MM has Fallen at -11.25%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Nitchitsu Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nitchitsu Co., Ltd.

32.07%

0.77

40.64%

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)

1.79%

EBIT Growth (5y)

11.46%

EBIT to Interest (avg)

11.13

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

0.73

Tax Ratio

19.26%

Dividend Payout Ratio

28.47%

Pledged Shares

Institutional Holding

ROCE (avg)

1.52%

ROE (avg)

1.04%

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

0.33

EV to EBIT

8.71

EV to EBITDA

3.07

EV to Capital Employed

0.24

EV to Sales

0.24

PEG Ratio

0.11

Dividend Yield

0.03%

ROCE (Latest)

2.75%

ROE (Latest)

2.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.27% (YoY

-26What is not working for the Company

INTEREST(HY)

At JPY 8.31 MM has Grown at 27.5%

NET PROFIT(Q)

At JPY 6.81 MM has Fallen at -81.74%

NET SALES(Q)

At JPY 2,203.05 MM has Fallen at -11.25%

INTEREST COVERAGE RATIO(Q)

Lowest at 4,549.6

CASH AND EQV(HY)

Lowest at JPY 5,188.65 MM

DEBT-EQUITY RATIO (HY)

Highest at -9.24 %

PRE-TAX PROFIT(Q)

At JPY 33.66 MM has Fallen at -36.65%

Here's what is working for Nitchitsu Co., Ltd.

Raw Material Cost

Fallen by -5.27% (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

Depreciation

Highest at JPY 160.96 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 Nitchitsu Co., Ltd.

Interest

At JPY 8.31 MM has Grown at 27.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 6.81 MM has Fallen at -81.74%

over average net sales of the previous four periods of JPY 37.27 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

At JPY 2,203.05 MM has Fallen at -11.25%

over average net sales of the previous four periods of JPY 2,482.21 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest Coverage Ratio

Lowest at 4,549.6

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At JPY 33.66 MM has Fallen at -36.65%

over average net sales of the previous four periods of JPY 53.13 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Cash and Eqv

Lowest at JPY 5,188.65 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -9.24 %

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