Nitcho Corp. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sansei Co., Ltd.

Nansin Co., Ltd.

Nitcho Corp.

SONOCOM Co., Ltd.

Hoden Seimitsu Kako Kenkyusho Co., Ltd.

Tokuden Co., Ltd.

Kyoritsu Air Tech, Inc.

Meiji Machine Co., Ltd.

Taihei Machinery Works, Ltd.

Tokyo Automatic Machinery Works Ltd.

Tokyo Kikai Seisakusho, Ltd.

Why is Nitcho Corp. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 9.08% and Operating profit at 3.16% over the last 5 years

Negative results in Jun 25

INTEREST(HY) At JPY 0.89 MM has Grown at 136.27%
NET SALES(HY) At JPY 7,746.97 MM has Grown at -15.03%
DEBT-EQUITY RATIO (HY) Highest at -44.7 %

With ROE of 9.22%, it has a very attractive valuation with a 0.63 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 46.59%, its profits have risen by 1.4% ; the PEG ratio of the company is 5.1

Market Beating Performance

The stock has generated a return of 46.59% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 27.37%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nitcho Corp. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Nitcho Corp. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Nitcho Corp.

46.59%

0.87

34.09%

Japan Nikkei 225

27.37%

1.06

25.71%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.08%

EBIT Growth (5y)

3.16%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

2.67

Tax Ratio

32.62%

Dividend Payout Ratio

25.43%

Pledged Shares

Institutional Holding

ROCE (avg)

21.43%

ROE (avg)

8.20%

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

0.63

EV to EBIT

1.65

EV to EBITDA

1.41

EV to Capital Employed

0.37

EV to Sales

0.09

PEG Ratio

5.05

Dividend Yield

ROCE (Latest)

22.27%

ROE (Latest)

9.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.63% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 8.6%

-25What is not working for the Company

INTEREST(HY)

At JPY 0.89 MM has Grown at 136.27%

NET SALES(HY)

At JPY 7,746.97 MM has Grown at -15.03%

DEBT-EQUITY RATIO (HY)

Highest at -44.7 %

OPERATING PROFIT(Q)

Lowest at JPY -425.25 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -18.53 %

PRE-TAX PROFIT(Q)

Lowest at JPY -455.99 MM

NET PROFIT(Q)

Lowest at JPY -327.83 MM

EPS(Q)

Lowest at JPY -294.64

Here's what is working for Nitcho Corp.

Debtors Turnover Ratio

Highest at 8.6%

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 -0.63% (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 Nitcho Corp.

Interest

At JPY 0.89 MM has Grown at 136.27%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 7,746.97 MM has Grown at -15.03%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY -425.25 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -18.53 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -455.99 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -327.83 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -294.64

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at -44.7 %

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