Nitto Denko Corp. (6988) 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

Nissan Chemical Corp.

Advantest Corp.

KEYENCE Corp.

Lasertec Corp.

Azbil Corp.

Amano Corp.

Nitto Denko Corp.

Dexerials Corp.

Yokogawa Electric Corp.

ULVAC, Inc.

Toshiba Tec Corp.

Why is Nitto Denko Corp. ?

High Management Efficiency with a high ROE of 11.47%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 78.10

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 11.47%

Flat results in Mar 26

DEBT-EQUITY RATIO (HY) Highest at -28.58 %
OPERATING PROFIT(Q) Lowest at JPY 54,916 MM
OPERATING PROFIT MARGIN(Q) Lowest at 22.69 %

With ROE of 12.17%, it has a attractive valuation with a 2.05 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 22.61%, its profits have risen by 3.4% ; the PEG ratio of the company is 2.2

Majority shareholders : FIIs

Underperformed the market in the last 1 year

The stock has generated a return of 22.61% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 88.41%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nitto Denko Corp. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Nitto Denko Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Nitto Denko Corp.

24.69%

190.99

33.11%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.77%

EBIT Growth (5y)

15.56%

EBIT to Interest (avg)

78.10

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.34

Sales to Capital Employed (avg)

0.95

Tax Ratio

25.90%

Dividend Payout Ratio

28.61%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

25.83%

ROE (avg)

11.47%

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

2.05

EV to EBIT

10.27

EV to EBITDA

7.53

EV to Capital Employed

2.49

EV to Sales

1.90

PEG Ratio

2.18

Dividend Yield

ROCE (Latest)

24.20%

ROE (Latest)

12.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

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

5What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 4.65

INTEREST COVERAGE RATIO(Q)

Highest at 16,691.79

RAW MATERIAL COST(Y)

Fallen by 1.94% (YoY

-6What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -28.58 %

OPERATING PROFIT(Q)

Lowest at JPY 54,916 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 22.69 %

NET PROFIT(Q)

Lowest at JPY 27,795 MM

Here's what is working for Nitto Denko Corp.

Interest Coverage Ratio

Highest at 16,691.79

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at JPY 4.65 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by 1.94% (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 18,486 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 Nitto Denko Corp.

Operating Profit

Lowest at JPY 54,916 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 22.69 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at JPY 27,795 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -28.58 %

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