Why is Nitta Corp. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 86.00
2
Positive results in Jun 25
- RAW MATERIAL COST(Y) Fallen by -6.81% (YoY)
- DEBTORS TURNOVER RATIO(HY) Highest at 3.4%
3
With ROE of 8.23%, it has a very attractive valuation with a 0.72 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 14.85%, its profits have risen by 21.7% ; the PEG ratio of the company is 0.3
- At the current price, the company has a high dividend yield of 0
How much should you buy?
- Overall Portfolio exposure to Nitta Corp. should be less than 10%
- Overall Portfolio exposure to Other Industrial Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Industrial Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Nitta Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Nitta Corp.
14.85%
0.15
21.25%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
1.49%
EBIT Growth (5y)
7.88%
EBIT to Interest (avg)
86.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.25
Sales to Capital Employed (avg)
0.63
Tax Ratio
16.96%
Dividend Payout Ratio
32.06%
Pledged Shares
0
Institutional Holding
0.02%
ROCE (avg)
4.89%
ROE (avg)
7.57%
Valuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
0.72
EV to EBIT
14.08
EV to EBITDA
8.43
EV to Capital Employed
0.63
EV to Sales
0.80
PEG Ratio
0.34
Dividend Yield
0.01%
ROCE (Latest)
4.48%
ROE (Latest)
8.23%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Movement
2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -6.81% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 3.4%
-17What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 8,847.62
NET SALES(Q)
Lowest at JPY 21,625 MM
INTEREST(Q)
Highest at JPY 21 MM
OPERATING PROFIT(Q)
Lowest at JPY 1,858 MM
PRE-TAX PROFIT(Q)
Lowest at JPY 3,207 MM
NET PROFIT(Q)
Lowest at JPY 2,829.72 MM
Here's what is working for Nitta Corp.
Debtors Turnover Ratio
Highest at 3.4%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -6.81% (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 Nitta Corp.
Interest
At JPY 21 MM has Grown at 16.67%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 8,847.62
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales
Lowest at JPY 21,625 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Interest
Highest at JPY 21 MM
in the last five periods and Increased by 16.67% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit
Lowest at JPY 1,858 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Pre-Tax Profit
Lowest at JPY 3,207 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 2,829.72 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)






