ScoreWhy is Nitta Gelatin, Inc. ?
1
The company is Net-Debt Free
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 9.64% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 3.69% over the last 5 years
3
Flat results in Jun 26
- INTEREST(HY) At JPY 33 MM has Grown at 22.22%
- NET PROFIT(9M) At JPY 1,758 MM has Grown at -34.32%
- RAW MATERIAL COST(Y) Grown by 6.86% (YoY)
4
With ROCE of 17.77%, it has a attractive valuation with a 1.01 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 43.92%, its profits have risen by 56.4% ; the PEG ratio of the company is 0.1
5
Underperformed the market in the last 1 year
- The stock has generated a return of 43.92% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Nitta Gelatin, Inc. 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 Nitta Gelatin, Inc. for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Nitta Gelatin, Inc.
32.17%
2.25
29.86%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.69%
EBIT Growth (5y)
25.31%
EBIT to Interest (avg)
27.96
Debt to EBITDA (avg)
1.10
Net Debt to Equity (avg)
0.11
Sales to Capital Employed (avg)
1.38
Tax Ratio
11.79%
Dividend Payout Ratio
16.62%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
12.03%
ROE (avg)
9.64%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
5
Industry P/E
Price to Book Value
1.01
EV to EBIT
5.70
EV to EBITDA
4.33
EV to Capital Employed
1.01
EV to Sales
0.67
PEG Ratio
0.09
Dividend Yield
NA
ROCE (Latest)
17.77%
ROE (Latest)
19.75%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at -5.2 %
NET SALES(Q)
Highest at JPY 9,893 MM
INTEREST COVERAGE RATIO(Q)
Highest at 10,160
CASH AND EQV(HY)
Highest at JPY 12,706 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 5.09 times
-7What is not working for the Company
INTEREST(HY)
At JPY 33 MM has Grown at 22.22%
NET PROFIT(9M)
At JPY 1,758 MM has Grown at -34.32%
RAW MATERIAL COST(Y)
Grown by 6.86% (YoY
Here's what is working for Nitta Gelatin, Inc.
Net Sales
Highest at JPY 9,893 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Interest Coverage Ratio
Highest at 10,160
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Debt-Equity Ratio
Lowest at -5.2 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Cash and Eqv
Highest at JPY 12,706 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 5.09 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Nitta Gelatin, Inc.
Interest
At JPY 33 MM has Grown at 22.22%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Profit
At JPY 1,758 MM has Grown at -34.32%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Raw Material Cost
Grown by 6.86% (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
Non Operating Income
Highest at JPY 0.11 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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